Smith v. Credico Industrial Loan Co.

In this appeal we decide whether a substitute co-trustee under a deed of trust, who does not act as trustee at a foreclosure sale, can bid on the subject property on behalf of another.

Forest R. Smith was delinquent in payments on a note held by Credico Industrial Loan Company (Credico) and secured by a deed of trust. On February 7, 1983, John R. Patterson and Hilda E. Morin were substituted as trustees under the deed of trust. The substitution of trustees form was signed on behalf of Credico by “Hilda E. Morin Authorized Agent.” Morin was a manager and according to her testimony “the…