Legal Question in Real Estate Law in California
private real estate loan
I lent a large sum of money to a business associate secured by a deed against a home that was purchased as a ''flip''. This person has since disappeared and I would like to foreclose on the loan. The problem is that I was never given a note for the loan, just the recorded deed. I believe he did this intentionally to avoid foreclosure. Do I have any way of foreclosing without this note? Thanks
2 Answers from Attorneys
Re: private real estate loan
My suggestion would be to contact one of the foreclosure services that has lots of experience in stepping in as a trustee and then carrying out the various notice and trustree sale procedures. Such a firm will probably require that you obtain a lost instrument indemnity bond, and the foreclosure specialist can probably also assist you in finding a surety that will issue the bond, but I can imagine there will be a hefty premium. You may also encounter some difficulties in serving the requisite notices of default and sale, but the same firm can probably find a way around that, too, by publishing the notices in addition to mailing them to the last-known addresses.
Re: private real estate loan
No. The note is the debt. A trust deed secures the debt. You can sue him, serve him by publication, etc., get a judgment, which then become a lien on all of his assets, then foreclose on any of his property you can find.
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