Deed of Trust

Question: if my home loan was never recorded 2 yrs ago; can i just walk away??

the new lender never recorded the Trust Deed (ca). the old loan was paid off; but it still appears as the trustee name on the tax records.

of course they will hit my credit; but if nothing was ever recorded; cant i just get a lawyer or credit specialist to fight it/ fix it....since w/o being recorded they have no recourse.
fyi; ca is a non recourse, non judicial state...meaning they cant come after any personal stuff (assets/wages/ect)besides the home.

Answer: No, you can't just walk away. Recording the loan only puts others on notice of its existence. Not recording it does not make it invalid, it just doesn't put others with an interest in your property subject to it's priority if you were to default. Since you have actual knowledge of the loan you can't use this to escape your liability.

Even if your loan is not recorded it is still a legal contract and represents a liability you owe. If you walk away you could be sued for the balance of the loan and any other contract damages that are foreseeable. If the lender obtains a judgment they may not be able to execute against your property through foreclosure but they can still execute the judgment against anything that is subject to a judgment, including the home. I

This is much more than just an issue with ruining your credit. It is about protecting all the assets you own against a judgment lien. Get some advice from a lawyer on whether the loan is valid. If it isn't, don't walk away but get a court to declare that you don't owe the debt and record that judgment in your property title. But if the loan is valid and you are not bankrupt and can pay it, pay what you agreed to pay, as you ethically and legally are obligated to do.

2. California Trust Deed Investing: Trust Deed Investment Basics