Deed of Trust

Archive for October, 2010

Question: I have a lien on a property that sold fsbo 2nd owner discovered it and doesn't want to pay in escrow?

I placed a lien on a property in CA in 1992 for a debt (Deed of Trust) the man sold it for sale by owner. I sent him a bill a few years ago and the new purchaser discovered it, the debtor called me and said he sold it and laughed. I think the new owner just took over payments and never had a title search. She wants to refinance or sell and the lien came up, the title company is friends with ladys niece who is a loan officer and they told her that her aunt shouldn't pay because it was there before she bought the property. I have a reconveyance ready to go and the title company is refusing to pay the demand. This was done when I was a bail agent and the first owners bailed someone that skipped. I have never had this problem. Title Co. said the insurance company is the beneficiary, I'm the trustee and lien holder. Shold I hire an attorney? the contract said 10% per year interest it is now about 25,000. due. The seller told her/buyer about the lien and she was aware.

Answer: The lien on the property is always a lien. Liens convey with a property if not paid off. The new owner is responsible for getting the lien paid. The new owner can always sue the previous owner for payment of this lien. My recommendation is to begin foreclosure proceedings on the property. The new owner will not be able to sell or refinance with a foreclosure looming over them. And that should scare the title company into being ethical about the whole deal.

Hire an attorney to begin the foreclosure proceedings as soon as possible. Take a copy of the lien to your attorney. He/she will be able to tell you who the beneficiary and trustee is. Most often the trustee is an uninterested person, not the person who is owed. I wouldn't trust anything that this Title Company says.

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Question: Mistake on Deed of Trust - Can I foreclose?

I sold a property several years ago, however, the party I sold it to has refused to pay me on the loan I financed. I've waited over 2 years and am tired of the excuses. I recorded a promissory note and a Deed of Trust as the time of sale. However, the new owners stated that there is a mistake on the Deed of Trust. It lists the wrong lot number and if I try to foreclose they will sue me. I've heard about judicial foreclosures, but, they are very costly and take forever.

Answer: If they want to fight you based on the lot number, they will make it difficult, there is no way to avoid that.

3421 Del Rio Tracking # 110 TD