Legal Question in Real Estate Law in California
I was carrying paper on the sale of a 4-plex. The balloon payment was due in October 2011. The buyer never paid - nor did he hand back the property. ** He sold the property in 2009, using a DoT I do not recall having signed. "Short form DoT and assignment of rents". I'm named the beneficiary and the buyer is th etrustee. Trustee can sell the property and do as he pleases. WTF? What about the due on sale clause?
Seems the buyer, a broker, bribed the escrow staff preparing the contracts. Other properties were paid upon sale.
Without having paid for the 4-plex, the buyer sold it. Making a balloon payment payable the same date his own balloon payment was due. Now it looks like the buyer's buyer failed to pay himself - not sure.
Are there specialists for NOD filings and foreclosure processing who work with private clients, not just banks? Is there a flat rate fee? How much will that be?
A broker licensed by the DRE, does he have to operate to a high ethical standard? Or can he lawfully steal from the public? Just wondering. Like the rents - to whom do they belong?
Thank you for reading. And I do appreciate any response!
4 Answers from Attorneys
It very much sounds like you have been badly defrauded. You need to contact an attorney directly immediately.
Yes, there are some non-attorney's who handle notices of default [you can find them in the phone book] and it would probably cost about $400-500 at the low range.Title companies often will charge much more. There should have been a due on sale clause clause and the title company should have picked it up if it was recorded. You may be able to sue them for negligence, breach of contract. The DRE does impose higher standards on a broker, but all they normally can do is take away his license. The other parties to the flipping sales might also be liable to suit, but the title company has the deepest pockets and should be gone after first.
I don't think the other attorneys carefully read your post.
The term "carry" is usually used when a seller sells property and "carries" the balance of the purchase price with a promissory note, rather than cash or payment from third party financing. It sounds as though your note is secured by a deed of trust. You wouldn't have signed the deed of trust, as the beneficiary does not sign the promissory note. The borrower who owes the money and is buying the property signs the deed of trust.
It sounds as though you are secured and should probably foreclose. It also sounds as though you have other remedies, through the assignment of rents.
I've handled foreclosures, both filed as lawsuits, and nonjudicially through trustee's sales. I can't give you a quote however, until I've thoroughly reviewed the underlying documents. If you would like to discuss it further, contact me at my private e-mail address.
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