Legal Question in Real Estate Law in California

Re: House in foreclosure due to unknown loan

The first thing I would recommend is to get a title search done to see if there really is a loan recorded against your property. You can pay a title insurance company to do a title search for you. i.e. Chicago Title. Second, ask the company claiming the default to send you a copy of the note and deed of trust. This should give you more information to start off with. Then you may want to contact a lawyer to clarify any issues you may have.

Re: House in foreclosure due to unknown loan

If I were you, I would contact a lawyer immediately. You should have all your paperwork together when you see him or her. They should be able to do a title search to get information, and determine if this an error or a scam.

Do not wait until the last minute, as pointed out by the first three posts.

Very truly yours,

Re: House in foreclosure due to unknown loan

You should see an attorney right away. This may or may not be a fraudulent loan, but this type of foreclosure can be difficult to stop without court intervention. You might also have a claim against the title companies that apparently missed this lien during the times where you refinanced the property.

This is a very complex situation that cannot be adequately addressed in the limited space allowed in this forum. I would immediately find a local real estate attorney that could review all of the pertinent documents and give you further advice.

Re: House in foreclosure due to unknown loan

There are several possible reasons this loan didn't show up in three previous title searches:

(1) Maybe there weren't three searches; maybe the refinancings were done by the same lender, relying upon a previous title search; or, if the lender was a private party, maybe they didn't bother to do a search.

(2) More likely, the mystery loan is incorrectly indexed at the recorder's office, or contains an error such as wrong assessor parcel number.

(3) Another possibility is that there is no loan; that some crooks are trying to shake you down for a quick pay-off. Be careful where you send money if you're asked to cure by sending someone a big check.

Whether you need to get a lawyer or not depends upon your resourcefulness and willingness to take chances with your home. Some non-lawyers could probably handle this matter themselves by doing their own title search, or getting someone other than a lawyer to do it for them. For example, it's possible that one or another title insurers on the refi loans might feel enough risk of a claim on the title insurance to step in and do the research. Also, there are private parties (paralegals, for example) that do title research on an hourly basis at less than what a lawyer would charge.

As you may know, the minimum time from Notice of Default to trustee's sale is about 80 days; as a practical matter, it's usually more than 90 days, but in any case you need to move decisively in the next couple of weeks. Remember that if you do need to retain an attorney, he or she will need some time to schedule your matter, do some research, and prepare any court filing needed.