Legal Question in Real Estate Law in California

Re: Deed of Trust -Promissory Note

It looks like you will need to file a lawsuit.

Re: Deed of Trust -Promissory Note

A deed of trust is supposed to secure a promissory note, so what were you thinking? Did you have a realtor? And why didn't you record the deed of trust? Also, if the deed of trust does not reference the legal description of the property it is defective and useless as a deed of trust. If you had recorded it and it was properly prepared, your only recourse to recover on a carried back second deed of trust would be to step in and cure the buyer's default on the first trust deed loan and then foreclose yourself--however, since you have a deed which isn't really a deed and was never recorded, you have no remedy that I can discern; you can't foreclose, and if the judge understands the true facts, you would have a hard time prevailing on a breach of contract suit.

Re: Deed of Trust -Promissory Note

Ms. Deming's answer is very thorough.

I can't add to it, except to suggest next time get a lawyer first.

Now get legal help ASAP.

Re: Deed of Trust -Promissory Note

You've got a real mess on your hands, but we've handled cases with somewhat similar challenges. If you'd like to chat about this, you're welcome to call. It sounds like the deed is defective and it is unclear from the information you provided what was done concerning the first. There is a lot to get straightened out and you could also have liability relating to your acts/omissions in this trnasaction. Whether its my office or not, get a lawyer involved NOW!!