Legal Question in Real Estate Law in California
Lost Note and Deed of Trust
I recently sold a house and took a note secured by a deed of trust as part of the purchase price. I was traveling home to put the note in my safe and stayed in a hotel along the way. When the maid cleaned the room, she through out the note and deed of trust mistaking it for trash. What should I do now?
2 Answers from Attorneys
Re: Lost Note and Deed of Trust
Get a replacement issued asap. There must be copies somewhere to base your position and proof upon. There surely was an escrow and a title company involved, call them.
Re: Lost Note and Deed of Trust
Hoo boy. And I suppose you didn't stop at the county recorder first to record the deed of trust (otherwise you could buy a copy). OK. Here is what I would do. You wait a couple of months and pray they make the payments (the payments, along with the banking records of your funding the loan, will help prove the existence of the debt if worse comes to worst). Then you, very quietly, offer the debtor a small break on the terms. Figure out an excuse why you would be doing this. Of course, to get the new terms the debtor will have to execute a new note and deed of trust. This method will test your acting / poker bluffing skills!
Next time take a cab to the county recorder's office before doing anything else. Aside from the protection this gives you against losing the paperwork again, this protects the chain of title against a possibly unscrupulous debtor who could record a bogus lien ahead of yours in the chain of title. Also next time fax the paperwork to yourself.
If there's still time, there's always the old dumpster-dive....
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