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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Surety Bond Posted by Craig in LA on July 27, 2004 at 10:57 AM In Reply to: Re: Surety Bond posted by Steve-CA on July 27, 2004 at 8:41 AM : I just bought a pre-foreclousre from a CA notary that was in default and encountered the same issue. I used a title company and bought title insurance. Apparently the bond is a state requirement if you want to be a notary, and even though it is recorded, it is not attached to real property (at least it wasn't attached to the real property I bought) and should not be a part of the transaction. Therefore, it does not need to be paid off, so you don't need to worry about it. Any title company can confrim this. I don't think these surety bonds attach to any real property, I don't think there's a requirement for notaries to own real property but they must be bonded and apparently this bond must be recorded. : : : Very strange, i called up the bond company and asked them about it and they said, "The state of California requires her to have this bond to be a notary." And I said, "If I bought the house from her is the bond still in effect?" And the lady, who was very nice, said, "Sir, I don't know what you're talking about." : : So it looks as if it is some kind of requirement of a notary public to have this bond. I'm guessing that if there had been an issue with the State of California that they would have recorded a lien against the property or started foreclosure? : : The foreclosure is an HOA, so I don't think that the surety bond is junior... : : I'm thinking I should not worry about this bond... : : Best, : : Mike : : : : : : 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 I am a former notary and confirm that you are required to post a $15,000 surety bond. The bond is personal and does not attach to real estate. It should not need to be paid on in a real property sale. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I just bought a pre-foreclousre from a CA notary that was in default and encountered the same issue. I used a title company and bought title insurance. Apparently the bond is a state requirement if you want to be a notary, and even though it is recorded, it is not attached to real property (at least it wasn't attached to the real property I bought) and should not be a part of the transaction. Therefore, it does not need to be paid off, so you don't need to worry about it. Any title company can confrim this. I don't think these surety bonds attach to any real property, I don't think there's a requirement for notaries to own real property but they must be bonded and apparently this bond must be recorded. : : : : : Very strange, i called up the bond company and asked them about it and they said, "The state of California requires her to have this bond to be a notary." And I said, "If I bought the house from her is the bond still in effect?" And the lady, who was very nice, said, "Sir, I don't know what you're talking about." : : : So it looks as if it is some kind of requirement of a notary public to have this bond. I'm guessing that if there had been an issue with the State of California that they would have recorded a lien against the property or started foreclosure? : : : The foreclosure is an HOA, so I don't think that the surety bond is junior... : : : I'm thinking I should not worry about this bond... : : : Best, : : : Mike : : : : : : : : 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 : : I am a former notary and confirm that you are required to post a $15,000 surety bond. The : bond is personal and does not attach to real estate. It should not need to be : paid on in a real property sale. 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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