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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] It's More Than Just Trust Deeds Posted by SeanW on August 29, 2003 at 6:05 PM In Reply to: Re: At your county recorder's office (nt) posted by Rob on August 29, 2003 at 12:48 AM You have to look at all the documents to determine what is owed on a house, and who owns it. Think of the deeds of trust, as kind of like notes from a sticky pad. You can just keep sticking (encumbering) them onto a real estate title, for as long as the owner is willing to sign them... and a lender is willing to lend. Here's an example. I could have numbered the steps 1,2,3,4... but I'm making up book and page numbers as would be recorded at the courthouse. Book 200 page 1. Warranty Deed. Ed Seller (as Grantor) conveys title, (subject to a deed of trust at Book 188, page 5) to Joe Buyer. Book 200 page 2. Deed of Trust. Joe Buyer (as Grantor) uses a deed of trust (a second mortgage) to help him pay the remainder of the price of the house. It was a 100% financing deal, and he had no down payment of his own. Book 204 page 16. Deed of Trust. Joe Buyer (as Grantor) takes out another deed of trust (a third mortgage) for whatever reason. Book 209 page 30. Reconveyance. (Might be called a Satisfaction, or Cancellation depending on your county) Joe Buyer (as Grantor) files a satisfaction for a deed of trust on book 200, page 2. Book 209 page 31. Deed of Trust. Joe Buyer (as Grantor) takes out another loan. (Hey, where do you think he got the money to pay off the D.O.T. on the preceeding page?) -------------------------------------------------- So class, what's on this house now? A senior deed of trust (book 188 page 5). A second mortgage (book 204 page 16). A third mortgage (book 209 page 31). What does he owe? The deeds of trust will each state the amount borrowed, monthly payment, and number of payments. A financial calculator can determine the interest rate from these values. Next, plug in the number of payments Joe Buyer made on each deed of trust, since its recording date, and use the interest rate you just determined. You can then calculate the balance of each loan. Add up the balances. Voila! You have the total amount owed on the house. That is..... if Joe Buyer is CURRENT on his payments! Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : You have to look at all the documents to determine what is owed on a house, and who owns it. : Think of the deeds of trust, as kind of like notes from a sticky pad. You can just keep sticking (encumbering) them onto a real estate title, for as long as the owner is willing to sign them... and a lender is willing to lend. : Here's an example. I could have numbered the steps 1,2,3,4... but I'm making up book and page numbers as would be recorded at the courthouse. : Book 200 page 1. Warranty Deed. : Ed Seller (as Grantor) conveys title, (subject to a deed of trust at Book 188, page 5) to Joe Buyer. : Book 200 page 2. Deed of Trust. : Joe Buyer (as Grantor) uses a deed of trust (a second mortgage) to help him pay the remainder of the price of the house. It was a 100% financing deal, and he had no down payment of his own. : Book 204 page 16. Deed of Trust. : Joe Buyer (as Grantor) takes out another deed of trust (a third mortgage) for whatever reason. : Book 209 page 30. Reconveyance. (Might be called a Satisfaction, or Cancellation depending on your county) : Joe Buyer (as Grantor) files a satisfaction for a deed of trust on book 200, page 2. : Book 209 page 31. Deed of Trust. : Joe Buyer (as Grantor) takes out another loan. (Hey, where do you think he got the money to pay off the D.O.T. on the preceeding page?) : -------------------------------------------------- : So class, what's on this house now? : A senior deed of trust (book 188 page 5). : A second mortgage (book 204 page 16). : A third mortgage (book 209 page 31). : What does he owe? : The deeds of trust will each state the amount borrowed, monthly payment, and number of payments. A financial calculator can determine the interest rate from these values. Next, plug in the number of payments Joe Buyer made on each deed of trust, since its recording date, and use the interest rate you just determined. You can then calculate the balance of each loan. Add up the balances. Voila! You have the total amount owed on the house. : That is..... if Joe Buyer is CURRENT on his payments! 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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