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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Surety Bond Posted by Rick Harmon on July 27, 2004 at 5:45 AM In Reply to: Surety Bond posted by Mike on July 27, 2004 at 0:38 AM : Hi Ward, I send you a copy of a surety bond that I found during a title search. Can you tell me what exactly it means? It is for $15,000 - do I pay this off if I purchase a property and a trustees sale? Or does the bond have to be "activated" in some way by the company that issued it? I am assuming that would show up in teh title search as well. : I'm still not exactly sure what a surety bond is. : Thanks, : Mike ====================================== I presume that your bond is junior to your foreclosing loan which would be wiped out by the trustee's sale. However, let's approach this as if your making a pre-foreclosure purchase. Most Surety Bonds, such as Bail Bonds, act to provide security to assure that someone does (or does NOT do) something. Bail bonds are typically written such that they cost about 10% of the bond however it's unusual that there is a balance owing if more than a year old. Since we don't know how old or what type of surety your bond secures, let's just jump ahead. I'd contact the Surety company who wrote the bond. A common pracice among bail bondsmen is that they don't reconvey the bond off title unless asked. When we get these on title we simple call the bail bond company, talk nice, and ask them to please provide us a notarized deed of reconveyance, which we have our title company record later. Most of the bond people are really helpful and pleasant to work with. While they do affect title, we don't worry about them much if they're more than a year old because, in the case of a bail bond, the person arrested has either shown up to court or the bail bondsmen would have started foreclosure on the bond by now if the person skipped. Also, we're pretty dialed into the big company that underwrites the bondsmen (my contact is now the big kahuna at American Contractors Indemnity, who's probably the bigest player at the underwriting level, and coincidently was the first attorney I ever spoke to when I was forming my probate loan business). To contact the Surety Company, pull a copy of the recorded document and simply contact them to find out if there is a balance owing. I'll bet you'll be pleased with what you learn. Hope this helps. Rick Harmon Follow Ups: Re: Surety Bond Mike S. 8:19 AM, 07/27/04 (2) Re: Surety Bond Steve-CA 8:41 AM, 07/27/04 (1) Re: Surety Bond Craig in LA 10:57 AM, 07/27/04 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward, I send you a copy of a surety bond that I found during a title search. Can you tell me what exactly it means? It is for $15,000 - do I pay this off if I purchase a property and a trustees sale? Or does the bond have to be "activated" in some way by the company that issued it? I am assuming that would show up in teh title search as well. : : I'm still not exactly sure what a surety bond is. : : Thanks, : : Mike : ====================================== : I presume that your bond is junior to your foreclosing loan which would be wiped out by the trustee's sale. However, let's approach this as if your making a pre-foreclosure purchase. : Most Surety Bonds, such as Bail Bonds, act to provide security to assure that someone does (or does NOT do) something. Bail bonds are typically written such that they cost about 10% of the bond however it's unusual that there is a balance owing if more than a year old. : Since we don't know how old or what type of surety your bond secures, let's just jump ahead. I'd contact the Surety company who wrote the bond. A common pracice among bail bondsmen is that they don't reconvey the bond off title unless asked. When we get these on title we simple call the bail bond company, talk nice, and ask them to please provide us a notarized deed of reconveyance, which we have our title company record later. Most of the bond people are really helpful and pleasant to work with. : While they do affect title, we don't worry about them much if they're more than a year old because, in the case of a bail bond, the person arrested has either shown up to court or the bail bondsmen would have started foreclosure on the bond by now if the person skipped. Also, we're pretty dialed into the big company that underwrites the bondsmen (my contact is now the big kahuna at American Contractors Indemnity, who's probably the bigest player at the underwriting level, and coincidently was the first attorney I ever spoke to when I was forming my probate loan business). : To contact the Surety Company, pull a copy of the recorded document and simply contact them to find out if there is a balance owing. I'll bet you'll be pleased with what you learn. : Hope this helps. : Rick Harmon Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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