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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Non-disclosed trust deed will probably prevail. Posted by Ward-CA- on March 31, 2002 at 1:05 PM In Reply to: More title company mistakes milking experences. posted by Nick(Coloado) on March 31, 2002 at 11:04 AM : Ward: : You mentioned once that one of your greatest victories : was extracting money from a title company. I have an : auction coming up where the foreclosing TD is following : in time (several years) by a WD to a new purchaser. Perhaps : the title company never followed up to see that the TD was : closed, or it was a wrap-around, etc... What has your : experience been? If you were to purchase such a position : based on the foreclosing TD, would you be able to extract : a high percentage of FMV from insurance? Would it be : relativity a sure thing and hassle free? =•=•=•=•=•=•=•=•=•=•=•= Nick, you’ve left too many details out, so forgive me if I make some guesses here. What I think you’re saying is that a currently foreclosing trust deed antedates an title-insured resale to a new bona fide purchaser for value (BFP). In essence the new owner knew nothing of the existence of the earlier trust deed against the title of the property at time of her purchase, and now, in spite of the fact that she holds title insurance, she’s threatened with the foreclosure of the non-disclosed trust deed. Now, what position are you proposing to buy—the non-disclosed trust deed or the owner’s position? My bias is towards buying the trust deed, but I’d want to figure out why the title insurance company didn’t find it when they researched the title at the time the property was sold to the new buyer. Knowing what went wrong is important here. The reason I don’t like the current owner’s position is that title insurance only insures an owner against the loss of their equity. So if the owner’s equity is less than the balance owed on the previously unknown trust deed, the owner could be exposed to some loss. By the way, I’ve learned that nothing is hassle free in such instances. Hope this helps. Follow Ups: Re: Non-disclosed trust deed will probably prevail. Nick(Colorado) 8:31 AM, 04/01/02 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Ward: : : You mentioned once that one of your greatest victories : : was extracting money from a title company. I have an : : auction coming up where the foreclosing TD is following : : in time (several years) by a WD to a new purchaser. Perhaps : : the title company never followed up to see that the TD was : : closed, or it was a wrap-around, etc... What has your : : experience been? If you were to purchase such a position : : based on the foreclosing TD, would you be able to extract : : a high percentage of FMV from insurance? Would it be : : relativity a sure thing and hassle free? : =•=•=•=•=•=•=•=•=•=•=•= : Nick, you’ve left too many details out, so forgive me if I make some guesses here. What I think you’re saying is that a currently foreclosing trust deed antedates an title-insured resale to a new bona fide purchaser for value (BFP). In essence the new owner knew nothing of the existence of the earlier trust deed against the title of the property at time of her purchase, and now, in spite of the fact that she holds title insurance, she’s threatened with the foreclosure of the non-disclosed trust deed. : Now, what position are you proposing to buy—the non-disclosed trust deed or the owner’s position? My bias is towards buying the trust deed, but I’d want to figure out why the title insurance company didn’t find it when they researched the title at the time the property was sold to the new buyer. Knowing what went wrong is important here. : The reason I don’t like the current owner’s position is that title insurance only insures an owner against the loss of their equity. So if the owner’s equity is less than the balance owed on the previously unknown trust deed, the owner could be exposed to some loss. : By the way, I’ve learned that nothing is hassle free in such instances. : Hope this helps. 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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