Which parties are protected by the Trustee Sale Guarantee (TSG)?

• A. The borrower
• B. The loan officer
• C. The trustee and the beneficiary
• D. The title company

Answer: (C)

The Trustee Sale Guarantee is designed to shield the parties most exposed when a foreclosure sale is conducted: the trustee who runs the sale and the beneficiary who holds the loan. A title insurer provides the guarantee to cover certain losses related to defects in the sale process or title issues that could undermine the sale’s validity or the transfer of title. Because of this focus, the protection is not aimed at the borrower or the loan officer, and while the policy is issued by the title company, the insured parties are the trustee and the beneficiary who rely on a proper, enforceable sale.