Legal Question in Family Law in California

It sounds like someone has been talking to you that does not know what they are talking about.

A deed is used to transfer an interest in property. Thus if someone owns property, and want to sell it, the mechanism used to transfer the seller's interest in the property is a deed.

California law provides for mortgages, but no one uses them. They security device of choice in this state is the deed of trust. People call them mortgages, but they are not. The deed of trust secures an obligation, usually a debt of money, which is evidenced by a promissory note.

In California, the owner of property who signs the deed of trust, which encumbers the property, is called the trustor. When a trustor sells or transfers the property to another person, the person who takes title does so by way of a deed. The deed of trust remains, and if the loan is not paid, the lender can foreclose and have the property sold, despite the fact that the original trustor has transferred title. When property is transferred without the existing loan and corresponding deed of trust cleared, it is said to be transferred "subject to," meaning subject to the existing deed of trust. When the lender agrees to make the new owner responsible for the existing loan and deed of trust, the lender will utilize their own transfer document and the property is said to be transferred "subject to, coupled with an assumption," meaning that the new buyer assumes the obligations under the promissory note and is subject to foreclosure under the existing deed of trust.

Lenders transfer notes all the time on what is known as the secondary mortgage market. That involves signing over the promissory note, under some rules governed by the UCC. But an assignment of the deed of trust is not required.

Mr. Roach is correct. There is no such thing as "signing over the deed" or "signing over the mortgage." Well technically, one lender could sign a mortgage over to another lender, but that would be irrelevant to you.