Carrying A Note To A Title Holding Trust

Comments(12)

• 
  DerrickAli5th June, 2004

  GAQ:
  
  Nice to meet you!
  
  it sounds as if you are truly in over your head here...
  
  If I were you I discuss my intentions with a compentent Atty exeprienced in both Trust Deed & Trust Statutes for CA.
  
  Best of the Best to You!
  
  Derrick Ali :-D

• 
  cjmazur6th June, 2004

  what was the endorsement "Without Recourse Pay to the Order of my name" mean?

• 
  JohnLocke6th June, 2004

  cj,
  
  A note sold "without recourse" means that you do not have to pay if payments stop.
  
  John $Cash$ Locke

• 
  gaq6th June, 2004

  Thanks for the replies. I am sure I am in over my head but I was looking for some insight and direction before the attorney turns his meter on. I like to know a little something before I go see a lawyer.
  
  Thanks for the clarification on "Without Recourse Pay to the Order of my name" So basically it means that the company who sold it and endorsed it over to me is not responsaqble for any payments due to be made.
  
  To the other person the "my name" is where it states my name!
  
  Can anyone answer any more of the questions or at least give me some input or ideas?
  
  Thanks
  gaq

• 
  JohnLocke6th June, 2004

  gaq,
  
  Glad to meet you.
  
  If the endorsement makes no mention either way about recourse, the law says that the note is endorsed with recourse. This silence can be a trap for you if you are unwary. In your case it was endorsed without recourse, so the company that sold you the note does not have to pay.
  
  Since laws very from state to state, advice given here may not conform with your state. You just need to bite the bullet and talk with a professional who understands how it works where you are.
  
  Understandably when we first start out sometimes we learn the hard way, I recommend talking with an attorney before you start any method of real estate investing creative or conventional. This may not stop all the lessons learned, but should limit them to a whole lot less of the I learned it the "hard way".
  
  John $Cash$ Locke

• 
  gaq6th June, 2004

  Glad to meet you as well.
  
  I am probably missing something here but I never would have expected the seller of the note to be responsible for any of the payments on the note. It was a non-performing note and that is why they sold it in the first place (at a discount). The debtor is still responsable for payments and the note is secured by a deed of trust. I just need to get the assignment of Deed of Trust completed. The seller of the note actually purchased the note with a bunch of notes in a portfolio. The company who sold it to them put that same text "without recourse" on the note when they sold it to them.
  
  I do not understand where the hard lesson is here. Can you please clarify?
  
  Thanks again,
  gaq
  
  P.S. What about my question on carrying a note back to the Title Holding Trust?

• 
  JohnLocke6th June, 2004

  gaq,
  
  Are you in first postition with this note?
  
  Did you check for liens and encumbrances on this property?
  
  John $Cash$ Locke

• 
  gaq6th June, 2004

  I got all of the lien information from the title company doing the forclosure. I am in fourth position on this note. the NOD had been filed and I bought it from the holder of the note. I am told I can proceed with the foreclosure now but I want to do it through a trust, There are a bunch of liens and encumbrances junior to the fourth. My note is only subject to the first three mortgages, but not the Abstact Judgements. They came after the creation of my original note and Deed of Trust. I am reasonably sure no one will bid on this property and I will have myself a fixer upper. None of the Senior notes were paid according to the original contracts. I am surprised none of them have forclosed by now.
  
  Thanks again.
  gaq

• 
  wexeter7th June, 2004

  It is difficult to address many of your issues here and the advice to consult with an attorney is VERY important.
  
  However, I do have a couple of comments. First, until the assignment of the Deed of Trust is recorded, you run the risk of the note being sold again or other liens being filed before yours. It is important that you get http://www.the.recorded as soon as possible in order to perfect your lien. Also, if the note was endorsed to you then the DOT should be in the same name and not any other. If you have a note endorsed to one and http://www.the.in another it would make foreclosure very difficult. My guess is that at this point you need to proceed in your name since that is how you started, but run that past your attorney first.
  [addsig]

• 
  active_re_investor7th June, 2004

  Gaq,
  
  Learn the hard way happens when something you did not expect bits you.
  
  Care to post some numbers on the 1st, 2nd, & 3rd that are in front of you? I am guessing you understand that if you foreclose you still have to bring the 1st, 2nd, and 3rd current for you to successfully control the property. With the back payments for those notes I hope you are still right side up.
  
  John
  [addsig]

• 
  gaq7th June, 2004

  I am puzzled by your comment about a lien being filed before mine, if I don't hurry. I bought a current position and I will be having the Deed of Trust assigned to me. How can another lien be filed in front of me when I am acquiring the former lenders position? Also, the seller is a fairly large investment group. It, although not impossible, is not likely they would sell the note again especially when the title company is in posesion of the original which has been endorsed to me, and they were informed that I purchased it.
  
  Please clarify and straighten me out if I am missing something here.
  
  Thanks,
  gaq

• 
  JohnLocke7th June, 2004

  active_re_investor,
  
  I see you got my point, also, if I were the 1st, 2nd or 3rd, I would let the 4th spend the money to foreclose also.
  
  There maybe room in this deal, but I too would have to see the numbers.
  
  John $Cash$ Locke