Re: Note Holder, Beneficiary & Trustee

Why do you say there is a breach of duty/conflict of interest? First of all, a "note holder" as you call it, is the same thing as the beneficiary on the deed of trust, and the beneficiary can be his own "trustee". The third party in the transaction is the TRUSTOR, (who is also usually the promisor on the note, i.e., the one who is supposed to pay the note; the trustor that is the one that owns the property securing the note, and that is you. There is no "breach of duty" in the facts you recite.

Re: Note Holder, Beneficiary & Trustee

As attorney Deming correctly points out, there is no conflict as (1) the Note Holder is the Beneficiary of the Deed of Trust, and (2) under California law, the Beneficiary can substitute any trustee he/she wants at any time they want. The trustee is not intended to be a neutral third party, the trustee works at the behest of the beneficiary, so it can be anyone the beneficiary wants.

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