Legal Question in Real Estate Law in California

Re: land

I am a bit surprised that as a licensed real estate sales person you don't know the answer to many of these questions. As a part of your licensing eduction, you covered most of this. In any event, the acceptance of payments after the due date has very little to do with anything. Their acceptance of payments probably doesn't in any way alter the fact that the loan is due, and the holder can start a foreclosure at any time. Again, as a licensed real estate salesperson you should know, or can research the timing for a foreclosure, so I am not going to repeat that information here. You have some time, but you cannot drag your feet. As for the unsecured note, you could theoretically record a deed of trust in favor of that lender against the property, but if your broker knows what he is doing, he will not take a deed-in-lieu of foreclosure once he discovers the subordinate debt, and will instead foreclose and wipe out the DOT, and you are back to square one with an unsecured obligation. If the broker sells the land down the road, you get nothing - once you sign it over, or he forecloses, you have no further rights or interest in that property, and the broker will keep any upside. Again, this is something you should know.

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