Legal Question in Securities Law in California

Well - this is hard to reply to as you do not give much information but the easy answer is that you forclose on your deed - the catch is whether the property is worth the $50K plus accuring interest. That is your legal remedy when you have a secured debt. It have been only one month though so you need tobe careful and follow the law exactly. First thing is the send a demand letter certifed return receipt and also send it by regular mail. DO not try and foreclose on your own - most things I would say you could probably handle yourself but not this - you will have toi hire an attorney or foreclosure service to so it exactly right - do not act in haste. Make sure you are dealing with a reputable company and I would also attempt to obtain the value of the property before you do anything. You can get an idea from the surrounding area sales. A good start is to look for realtors in that are or there are some websites that will give you a quick value for a fee (I do not recommend them).

It might be to your advantage to writea new note with new terms and a deed of trust given property values right now. I would look at this option especially if they have paid consistently. You need legal help with this though or you could really go under. I can be reached by clicking my name in blue onthe reply or on the CA State bar website - which has my email on it.

Please be very careful

Best Wishes

You have a two-step process here: (1) first, deciding whether to foreclose, and then (2) carrying out the foreclosure or other next step.

In deciding whether to foreclose, you'll need to make an estimate of how much the property would likely bring at a foreclosure sale, and where you stand in the pecking order. If the property is worth $400,000 but there is or are mortgage(s) totaling $425,000 ahead of yours in seniority (generally based on date of recording, unless someone has subordinated), you'd get nothing from foreclosure. You need enough available equity so that you are not "undersecured."

It might be beneficial to wait and see if values rise, if you are undersecured (under water").

If foreclosing makes economic sense, note that the procedure is spelled out in detail in the Civil Code, including the wording required in a "Notice of Default: and a "Notice of Sale" and the minimum time requirements. Figure on it being about a 120-day process. Also, the notices must be recorded and must be sent by certified mail to various parties, including other lenders, co-owners and anyone who has recorded a request for notice of default. This is not a process for the inexperienced or untrained.