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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Civil Code 2898 Posted by Travis, the Judgment Guy on April 15, 2008 at 9:51 PM In Reply to: Re: AJ recorded 10/23/03, but prior to mortgage from 7/22/04 posted by Jerry - Ca. on April 13, 2008 at 2:26 PM : : You may be right. Perhaps Ward missed the recording dates. : : I guess that it's possible that if the $355K mortgage were purchase money, the lender may not have required the AJ to be satisfied. : : Alternatively, we occassionally leave AJ in senior position on our private money probate deals because I know how to deal with them later in the unlikely event that I've have to. : : But you're right, this is a race to record State. From a practical standpoint I'd be surprised if this AJ still survives as the mortgage lender would have most likely (but not certainly) required the AJ paid (or at least released from the PIQ). : : Any other perspectives? : XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX : Hello Rick: : You said that lender might not have required that prior AJ be paid-off if the loan was a "purchase money" loan. I've never seen a lender on a purchase money loan not require the AJ to paid off and assume Junior priority position. If a refi ... hard money loan maybe. : Also, David, remember that even though the IRS lien grts wiped-off title ... The IRS has a 90-day Right-Of-Redemption(ROR) that you'll have to "sweat-out"! : Jerry - CA. Jerry, Take a look at Civil Code 2898 and you'll see what that Cranky Probate Guy is talking about. It happens ALL the time. (a) A mortgage or deed of trust given for the price of real property, at the time of its conveyance, has priority over all other liens created against the purchaser, subject to the operation of the recording laws. (b) The priority of the lien of a mortgage or deed of trust on an estate for years in real property shall be determined in the same manner as for determining the priority of a lien of a mortgage or deed of trust on real property. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : You may be right. Perhaps Ward missed the recording dates. : : : I guess that it's possible that if the $355K mortgage were purchase money, the lender may not have required the AJ to be satisfied. : : : Alternatively, we occassionally leave AJ in senior position on our private money probate deals because I know how to deal with them later in the unlikely event that I've have to. : : : But you're right, this is a race to record State. From a practical standpoint I'd be surprised if this AJ still survives as the mortgage lender would have most likely (but not certainly) required the AJ paid (or at least released from the PIQ). : : : Any other perspectives? : : XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX : : Hello Rick: : : You said that lender might not have required that prior AJ be paid-off if the loan was a "purchase money" loan. I've never seen a lender on a purchase money loan not require the AJ to paid off and assume Junior priority position. If a refi ... hard money loan maybe. : : Also, David, remember that even though the IRS lien grts wiped-off title ... The IRS has a 90-day Right-Of-Redemption(ROR) that you'll have to "sweat-out"! : : Jerry - CA. : Jerry, : Take a look at Civil Code 2898 and you'll see what that Cranky Probate Guy is talking about. It happens ALL the time. : (a) A mortgage or deed of trust given for the price of real : property, at the time of its conveyance, has priority over all other : liens created against the purchaser, subject to the operation of the : recording laws. : (b) The priority of the lien of a mortgage or deed of trust on an : estate for years in real property shall be determined in the same : manner as for determining the priority of a lien of a mortgage or : deed of trust on real property. [ 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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