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  • Presidents Message ...................................... 4

    FEATURED ARTICLES

    Learning the Hard Way .............................. 6

    Pressure Cooker Lessons .......................... 8

    Awarding of Attorney Fees ...................... 10

    Demolition of Property ............................. 12

    Californias One Action Rule .................... 14

    Tax Sale Redemption in TN ..................... 16

    The Doctrine of Snoozeth-Looseth .......... 18

    LEGISLATIVE UPDATES

    The Certainties of Life .............................. 20

    Washington State Senate Bill .................. 21

    EDUCATION NEWS

    La Jolla Will Host 2007 Conference ........ 24

    MEMBERSHIP NEWS

    Gary Wisham Elected UTA President ...... 26

    Interview with Gary Wisham .................... 27

    Committees Seeking Volunteers .............. 29

    Interview with Nick Salamone ................. 30

    Inside This IssueContinued on page 1

    Summer 2008

    The dark and stormy California foreclosure

    River is overflowing

    On January 1, 2008, California entered its worst foreclosure crisis since the downturn of the early 1990s. In the first quarter of 2008, default notices rose to the high-est level in fifteen years. Over 100,000 California homes are in foreclosure, and almost one-third of existing home sales are foreclosure sales. Foreclosures in Riverside and San Bernardino coun-ties are up 161 and 156 percent, respectively, compared to just one year ago.

    Th e rise in foreclosures will create new foreclosure-related civil litigation, in-cluding individual actions against trust-ees and benefi ciaries alleging wrongful foreclosure and class actions against in-stitutional trustees and lenders alleging violations of Californias Unfair Compe-tition Law (UCL).

    Californias statutory provisions regu-lating the conduct of non-judicial fore-closure sales are strict. Courts have imposed liability for minor deviations from the statutory requirements. As the foreclosure crisis worsens in the upcoming months, trustees and benefi -ciaries should review and update their internal procedures for requesting, noticing, and conducting non-judicial

    foreclosure sales. Taking steps now before the liti-gation fl ood gates open can re-duce the ultimate cost of defending against the inevi-table increase in foreclosure-relat-ed litigation.

    Described below are some common is-sues that arise in foreclosures and rec-ommendations for procedures trust-ees and benefi ciaries should consider incorporating into their foreclosure-related business operations. For both trustees and benefi ciaries, these simple and aff ordable steps should help reduce litigation exposure.

    Avoiding Costly Mistakes in the Midst of Californias Current Foreclosure Crisis: Practical Advice for Trustees and Beneficiaries in Nonjudicial ForeclosuresBy Antony D. Nash, Esq., and John J. McNutt, Esq., Luce, Forward, Hamilton & Scripps LLP

    PRESIDENTS MESSAGE ............................................. 4FEATURED ARTICLES A Legislative Matrix .................................................... 6 The F Word .............................................................. 8 The IRS Finally Responds........................................ 10 Harsh Facts Make Good Law ................................... 12 Can Trustee Recover Attorneys Fees? ..................... 14 Nonjudicial Foreclosure in New York ........................ 16 Rescission Under TILA ............................................. 18 Loss Mitigation.......................................................... 20 Beneficiary and Trustee: Litigation Parties ............... 22STATE NEWS California: Endgame for Mortgage Bills .................... 24 Washington: New Duties for Trustees ...................... 26 Utah Legislative Changes ........................................ 28 Massachusetts 90-Day Right to Reinstate ............... 30 Colorado Updates..................................................... 32 Michigan: Pending Legislation .................................. 34 Proposed Changes in Illinois .................................... 36 Oregon: Implementing New Procedures .................. 38 New State Laws Affecting Foreclosure..................... 40CASE LAW UPDATES Four Foreclosure Cases Worth Review ................... 44UTA AND INDUSTRY NEWS UTA Considers Challenge to Local Ordinance ......... 46 Federal Foreclosure Bills .......................................... 47 UTA Membership Brochure ...................................... 47EDUCATION NEWS Annual Conference Info ............................................ 48 Texas Foreclosure 101 ........................................... 49 Certification DVD Available....................................... 50MEMBERSHIP NEWS Members on the Move.............................................. 52 Interview with June Christy....................................... 52

    Inside This Issue

    Continued on page 54

    For both trustees and beneficiaries, these simple and

    affordable steps should help reduce litigation exposure.

  • 2

  • Production

    Editor: Richard MeyersUTA Executive Director

    rmeyers@unitedtrustees.com

    Consultant: Martin T. McGuinn, Esq.Kirby & McGuinn

    MMcguinn@kirbymac.com

    United Trustees Association2030 Main Street, Suite 1300

    Irvine, CA 92614(949) 260-9020 www.unitedtrustees.com

    Disclaimer

    This journal is presented by the United Trustees Association (UTA). UTA encourages the open discussion of current events and issues relating to the non-judicial foreclosure process. UTA does not endorse the views and opinions expressed by any author, contributor and/or advertiser. UTA does, however, recognize the First Amendment right of every author or contributor to express his or her views.

    The views of any person expressed herein do not necessarily repre-sent those of the UTA, its directors, officers or members, nor are they to be construed, in whole or in part, as legal advice. For legal advice, please consult an attorney.

    Copyright, 2008, UTA. All rights reserved. No part of the UTA Quarterly may be reprinted without permission. For permission, write to UTA, 2030 Main Street, Suite 1300, Irvine, CA 92614.

    The UTA Quarterly is distributed four times a year by the United Trustees Association. This journal is published to provide its read-ers with useful material concerning new and thought-provoking developments, practices and trends in the trustee-related indus-tries.

    To ensure that you receive a copy of the UTA Quarterly, become a UTA member. To obtain membership information, write to UTA, 2030 Main Street, Suite 1300, Irvine, CA 92614. Or visit www.unit-edtrustees.com

    We encourage UTA members, as well as our other readers, to con-tribute articles. Any ideas, comments and suggestions that you have for the UTA Quarterly would be appreciated. Please forward your remarks to the editor.

    Advertising Information

    The following companies have advertised in this issue of UTA Quarterly.

    Thank you for your support!

    Adleson, Hess & KellyCalifornia Mortgage Bankers Association

    Daily JournalFirst American Title

    FIS Default SolutionsForeclosure Solution

    Interface, Inc.Law Office of Rex C. Anderson

    Legal LeagueMark Chernoff Insurance Broker

    NDExNorth American Title

    Orange Coast TitlePriority Posting and PublishingReliable Posting & Publishing

    RSVPServiceLink

    Stewart Title of CaliforniaTrustees Assistance Corp.

    United Trustees Association

    Potential advertisers include title companies, posting and publish-ing services, legal newspapers, computer services and attorneys. Anyone servicing the foreclosure industry is a possible advertiser. The cooperation and support of the UTA membership is necessary to make the UTA Quarterly and the Annual Education Conference successful. Please ask your representative to place an ad.

    For advertising information,

    Contact Richard Meyers(949) 260-9020

    rmeyers@unitedtrustees.com

    Mission Statement

    To foster, improve and promote integrity of services in the default mortgage servicing industry through a level of excel-lence, education, local outreach and legislative advocacy.

    3

    United Trustees Association Summer 2008

  • 4

    Spring 2008 United Trustees Association

    New Products and Programs Featured This Year

    UTA has introduced several new products and programs this year. 153 of our industrys staff have now taken our new California Foreclosure 101 course. On August 15th, our Texas Foreclosure 101 course will debut in Houston, taught by two excellent instructors, Mary Speidel, Esq., of Codilis & Stawiarski and Jim DeLoach, Esq., of Butler & Hosch. I would like to publicly acknowledge Mary Speidel for the work she has done in coordinating the materi-als for this terrific course.

    Additionally, UTA has made a DVD of the Basic California Foreclosure Certification Course (CA-1) available to members. The DVD course instructor is the very popular Randy Newman of National Foreclosure Service. Order your DVD today and let everyone in your company who processes foreclosures in California view it, along with the course materials. If you or anyone on your team subsequently desires to take the certification exam to become a Trustee Sale Officer, our office will coordinate that with you.

    This year, along with the 2008 Member Directory, our members received a beau-tiful new four-page UTA Membership Brochure. Members are encouraged to order complimentary copies of the bro-chure in order to encourage prospective members to join UTA. The brochure will also be used by our staff when we are promoting the Association.

    We have also greatly expanded