Title companies not liable for premature foreclosure recordings
Civil Code §2924.25
Amended by S.B. 310
Effective date: January 1, 2014
Until January 1, 2018, a notice of default (NOD) may not be recorded if the delinquent borrower is negotiating or has entered into a written agreement for a loan modification or other foreclosure alternative. A title company which, in the normal course of its business, records an NOD or notice of trustee’s sale (NOTS) at the request of a trustee is not liable for violation of this rule. This exemption does not apply to title companies acting as trustees when recording the NOD or NOTS.
I can see non- inhouse TSG Officers aren’t liable, but inhouse Title Trustees are also not in the communication loop of lenders’ inside information. I don’t agree these Trustees should be treated like Foreclosure Officers of the lenders.