Posted by John Merchant on January 22, 2011 at 13:38:13:
It appearing that you’re the tenant here it seems to me that you’re in a great position.
Just stop paying him rent and force him to do something about it and prove legally that he even has the right to collect rent on the property.
I’d guess you hadn’t realized it but now YOU might have superior rights to the property ahead of this alleged “owner” and with nobody now claiming any rights to the property on behalf of the trustee or its lien-holder beneficiary.
So you might stay there for many years without anybody making any effort to dislodge you and eventually you could end up with title through your state’s adverse possession law.
For your safety, should he be able to show ownership and right to your rent, I’d open a separate savings account with a local bank, have your rent money go into that account and just stack it up for him to make legal claim on. I’d tell this “owner” nothing about this pvt account so IT wouldn’t be any target for him.
Then he’ll have to put up or shut up legally and it’ll be his expense to hire lawyer, gather proof and prove his right to anything from this property.
What state is the RE in? Your comment that “normally at an auction B has to make a deposit and pay balance later” is not universally true.
In a number of states B has to put up all cash purchase price at auction unless prior written arrangement has been worked out with Trustee and mortgage beneficiary (bank or other lien holder foreclosing).
This has been extremely interesting to me, seeing that I’m IN the mortgage foreclosure business as a Trustee Co and your post has raised some interesting points.
In fact almost every DOT, mtg and RE Contract foreclosure or forfeiture we do brings new and most interesting issues to the fore.
If a person claims that they bought a house a trustee sale and the sale was NEVER RECORDED (and actually the results of the sale) cannot be located anywhere on recorded public documents—does that mean that the person has no ownership? In other words, aren’t deeds from a trustee sale suppose to be recorded. If he cannot produce a recorded deed then I assume he does not own the house???
"Trustee’s Foreclosure Guarantee T Policy - Posted by John Merchant
Posted by John Merchant on January 21, 2011 at 23:45:37:
“Trustee’s Foreclosure Guarantee” is normally issued to Buyer at escrow of B’s purchase showing that Trustee’s Deed to Buyer is covered and Trustee has title with all having gone well with Tee’s Foreclosure.
Escrow should be informed by B in writing that they are not to close and not to use any of his money until/unless such Title Guarantee is delivered and it shows clear title is now in Trustee.
And of course as Rick says escrow should be one of your selection, maybe even your lawyer so you know all is straight and no fraud at close of your purchase.
No. “Sales” per say, are not recorded. Transfer deeds are.
In my State, CA, the trustee responsible for the sale, produces the original Trustee’s Deed Upon Sale on behalf of the bene’s and provides it to the buyer vested in the name of the buyer’s designation.
Sale information is noted on the face of the deed including the amount bid and accepted.
Many buyers use white out to obscure this fact from the public although the information is still disclosed to the assessor, for property tax purposes, prior to recording their deed.
In some counties, it may take the recorder several days to make the recorded deed available to the public. For this reason, most investors make it a policy to get a conformed copy of the deed noting the time/date recorded and the instrument # for easy reference.
I attended the So Cal Reia meeting last night near Ontario airport in which a seasoned title rep started a lively discussion about certain scams appearing in the So Cal (and other?) areas whereby "sellers are falsely reconveying TD’s as paid off and free and clear. The crooks are then pushing would-be buyers to wire funds quickly (no kidding!) and then disappearing.
Sometimes deals sound too good to be true but when in doubt, don’t, because the odds are good that the goods are odd.