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Recording loan against a property that is no longer owned.

Posted by Bob (CA) on January 22, 2010 at 6:14 PM

Ward,

I purchased a 2 houses on a lot property at a California trustee sale. The former owner has demanded that I do not speak to the tenants has instructed the tenants to continue to pay rent to him and the tenants will not talk to me or my office and continue to allegedly pay rent to former owner. (3 months now) Some language barrier but appears to be more an effort to get free or discounted rent.

I have an eviction attorney working on clearing the non paying, non cooperative tenants out of the property.

I looked at the chain of title today and found that the former owner has recorded a deed of trust against the property. The benficiary is a private party and the loan amount is fairly small. (Non insured transaction) This deed of trust has been recorded well after the Trustees Deed Upon Sale conveying ownership to my firm was recorded. This deed of trust clouds my title. Is this a case of slander of title and can this type of activity be prosecuted criminally? I assume I must engage (pay) an attorney to do a quiet title action however I would hope there would be strong deterients/laws that would prohibit this type of behavior.

Any advice.


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