Any tips on getting the deed asap after the auction to ensure you get it recorded under the 15 day limit? ? If it really isn’t possible, how is First American Loanstar (Wells as the bene) as far as processing and sending the deed.
Most trustees are pretty good about getting it out. I usually wait about 1 week and then call the trustee and see if I can’t get the attorney handling the file to ask status. If they say it may be a while, then I remind them that the civil code says the deed has to be recorded within 15 days, and that I expect them to cover any title issues that crop up if they don’t get it to me in time. Usually they will then overnight it at their expense.
Is the sale at the acution a binding contract on buyer and seller? Seems they cover all the bases on making sure the buyer is bound. Without the deed, do you have ownership? I purchased my 1st house at auction two weeks ago. I have called the trustee and they see no problems, but they do not have the deed yet. Should I try leaning on them with regards to the code? Can you give me the citation? The house was a rental and the bank had taken possession of it before the auciton, It was vacant. So we started working on it. Mostly tearing out carpets, etc, but we want to start putting it back together, which is real money. So I am concerned about doing the work and not owning the house.
Two weeks is too long, I personally think anything over 10 days is unnacceptable. You’ll find the this in Civil Code 2924.
This is great information. I seem to be dealing with a paper pusher at CA Reconveyance. You mentioned talking to the attorney in charge of the particular propoerty. Would the attorney be with the trustee? Is that who I should ask to talk to? To be accurate, it will be 2 weeks on the 20th. After readind the relevant code, it seems that they have some wiggle room is they don’t provide the deed in 15 days. Is this true? Seems odd that their failure to act could invalidate my rights. I can only imagine what would happen if I called and said, I don’t want the house for whatever reason. I am sure they would not let me off the hook. Of course, I do want the house.
i just bought a few about the same time as you did. i would hold tight as i just got 3 deeds in the mail this morning. i know it is nerve racking your first time, and you can try all you want to get info out of the trustee (and i would) but bottom line, i would be willing to be that deed shows up in your mail by wednesday. as long as you listed the correct mailing address. ? let us know how it goes.
Thanks Anon for the very current feedback! Waiting for deeds can be nerve racking even after you’ve done a hundred… especially if you got a really good deal. ? That said, you’re right CA Recon is a big outfit and he will likely get them just in time to run down within the time limit. Still at 10 days we always would call. ? And Richard, yes it is usually an attorney handling the case at the trustee. Just call the trustee and ask to speak with the attorney handling your purchase (either by address or TS#). Start by asking nicely for an update, but be firm that you expect to receive the deed in time to record within the statutory time frame.
I called CA Recon this morning to get an update on the Trustee?s Deed. I have been dealing with Jauna, a very pleasant woman responsible for processing the Trustee Deeds. The story is that she is the only one doing this and that there was a large increase in activity around the 1st of May. As a result, she was unable to process the sales. Apparently, the trustee prepares documents and submits the money to the lender who then verifies the funds and generates the refund check. IN my case, because she was delayed in sending the funds and documents to WAMU, she still does not have the refund check. I asked about talking to their attorney and I was told there were no attorneys to talk to. I cited the civil code and told her we needed to get this done. She has promised to move mine to the front of the line, but she can do nothing until WAMU sends her the refund check, which apparently also verifies the funds. I bank at WAMU, the checks were drawn on WAMU and the foreclosure was a WAMU loan, so it should be pretty easy to verify the funds.
What are the implications of not recording within the 15 days cited in the code?
?. the trustee’s sale shall be deemed final upon the acceptance of the last and highest bid, and shall be deemed perfected as of 8 a.m. on the actual date of sale if the trustee’s deed is recorded within 15 calendar days after the sale?
What does perfected mean?
I’m not an attorney, but I’ve understood this to mean that the deed is to be treated as if it were recorded 8am the day of the sale. This would put it in front of any recorded claims that were to occur between the date of sale and recording of the deed. ? So for example, if you did not get it recorded in time and the IRS were to file a lien after the sale, but before your deed was recorded, then they would be entitled to their 120 day right of redemption. Generally though the trustees deed wipes out any claims recorded after the deed of trust itself, even if recorded late, so the risks are minimal. I once actually had a har money lender file a subordination agreement in an attempt to turn my “1st” into a “2nd” - though it was clearly fraudulent and my attorney was able to get them to reconsider pretty quickly. ? Again, I wouldn’t worry about it, but I would probably still fax a nice note to CA Recon on the 14th day stating that you repeatedly requested the trustees deed be sent with sufficient time to record before the 15th day per the code.
This is a great primer on the process and what to watch out for. Your interpretation makes complete sense. I am having lunch with my attorney today. He is a tax and real estate attorney, so it will be a good lunch time discussion. So far so good, nothing new has been recorded against the property. But it is a reminder not to sit on the deed once it arrives. There are clearly valid reasons to want to perform and record as quickly as possible after receipt of the deed. It does seem that the risk of the deal not going through is minimal. But I do like the idea of having the law on my side. I have created part of the anxiety on my own by taking possession and starting to do work.? I was uncertain about what to do after the sale. I had tracked another house for practice and watched it sell to a 3rd party. They knocked on the door of the owner the same day as the sale and gave them a 3 day eviction notice, their stuff was in the driveway a week later with the sheriff there to enforce the eviction. They began work immediately and the house was on the market for sale in about 5 weeks. In fact it got multiple offers at well over $125K above the auction price. So it seemed to me that the best thing to do was take possession and act as though it was mine. No one seemed to care.? I know it was being watched by the field operations guys because they continued to cut the grass.
in case you didnt know this already, there are very strict loan regulations regarding flip homes. you cannot sell the property for more than 20k over what you bought it for (and that is a ridiculous number) within 90 days from the date you recorded the deed. there are exceptions such as a cash deal and very few conventional loans, but for the most part, expect to have to sit on your investment for about 4 months, or take less money in cash. hope that helps. talk to your local lender if you need anymore insight.
The 90 day flip rule is primarily FHA. Most of the auction folks I know are clearly stating that they won’t accept FHA financing on resale. While its a hassle, things are hot enough right now they aren’t having too much trouble getting stuff resold.
I called CA Recon this morning and got the same story that they could not send the deed until they got the refund money from WAMU. I commented to her that I thought the trustee?s primary agenda was to insure the foreclosure process met the legal requirements, crossing the Ts and dotting the Is. I reminded her that the code required recording within 15 days from the sale or the transaction would loose the protections provided by the code. A few hours later, I got a call telling me that they were issuing the trustee?s deed today and that it would be sent to me via FedEx if I paid the overnight charges. But, that the refund would come later. I agreed to the compromise and the FedEx envelope is on it?s way to me for delivery tomorrow. This will allow for being recorded within the 15 days. It does seem that telling them they were opening the door to title issues got them moving. Great advice and a good call. This has been an important learning opportunity. Thanks for the Help!!
Opening themselves up to what sort of title issues if it wasn’t recorded within the 15 days due to their delay?