Deed of Trust/Loan seniority question


#1

In 1987 a new purchase money Trust was made & in 1997 a property was sold & new owner assumed the loan dated 1987. In 2004 she got another trust & in 2009 She got remodification of trust that she assumed(originally dated 1987).In land record this re-modification was recorded as modification of trust. Would that assumed trust(then modified after another trust of 2004) would consider a senior?


#2

I assume you mean deed of trust (mortgage), not a “trust” which is completely different. Your question is tough to answer, and I’d suggest talking to a title company. I think it will comed down to which terms were modified in that original loan. For example if the amount was increased, I think that might make the earlier loan junior, however, something like a forbearance agreement might not.


#3

Yes it was purchase money deed of trust that was originally issued for the purchase of a house in 1987 then it was assumed by the new owner when the house was sold in 1997.Then the new owner took another mortgage trust in 2004 & in 2009 she got re modification of deed of trust(originally issued to the previous owner in 1987) she assumed when she purchased the property. Now the trustee of that loan is foreclosing the property & mentioned in the add that original deed of trust dated 1987 & gave book & page numbers of recorded trust & then mention that it was re modified in page & book number. I would assume that loan is in seniority position? Mon Mar 12th 2012 at 5:43pm


#4

Hi Tariq - got it the first time, and again I’d say be very careful as it likely depends on the details of the modification. I’d talk to at least a title officer before deciding whether or not to buy, and perhaps an attorney to review the specific details. Even if you believe it is senior, I’d be prepared for a battle with the other lender - both with regards to time and money. Sean Mon Mar 12th 2012 at 5:53pm