We borrowed $89,000 in 1982, and secured the loan with a Deed of Trust. We have paperwork showing the note was paid off. We never got a reconveyance, nor did the county recorder's office ever get notification.
I recently contacted the individual whose company loaned us the money, and told him we never got the reconveyance. I sent him copies of the documentation showing the loan was satisfied. Soon thereafter, he told me the company that loaned us the money (his company) was bankrupted, and that he just spoke with his attorney, and was told not to sign any reconveyance or anything on behalf of the bankrupted company.
The Deed of Trust shows his company as the "Trustee", and himself as the beneficiary listed as follows "First name /Last name DBA Company Name". This guy is listed as the beneficiary.
He won't send me the reconveyance. Do I have any legal grounds to get him to sign? Because he is listed as the beneficiary (DBA his company name), and his company is bankrupt, is he exempt from providing the reconveyance (and paying my legal costs since he didn't reconvey in a timely manner)?
1 Answer from Attorneys
The company may be in a Chapter 7. These are relatively short term. You can wait until the chapter 7 closes and the bankruptcy court no longer has any jurisdiction over the debts and assets of the company and then demand the reconveyance.
If the company is in a Chapter 11, you may need to hire an attorney. Possible actions are to object to plan confirmation, or to begin an adversary proceeding in the bankruptcy court demanding the reconveryance and damages.
It will cost you some money upfront if you need a bankruptcy, litigation attorney to get the court to order the reconveyance, however you may be able to recover against the company if their actions are wrongfull.
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