Legal Question in Real Estate Law in California
foreclosure
can a beneficiary in 2nd lien holder position initiate foreclosure for non payment of the note and d/t, when the trustor sold his interest in property to a 3rd party for cash and recorded a grant deed without title insurance?
Asked on 12/17/07, 8:03 pm
1 Answer from Attorneys
Carl Starrett
Law Offices of Carl H. Starrett II
Re: foreclosure
Yes. Second trust deed holder had a lien that was public record at the time of the sale. The purchase took title to all liens that were recorded prior to the purchase. The buyer is considered to have what is called "constructive notice" of all prior liens.
Paying cash, not using an escrow and not obtaining title insurance were all a gamble by the purchaser. The purchaser lost. You have not described any legal grounds for the buyer to prevent a foreclosure for nonpayment.
Answered on 12/17/07, 8:35 pm
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