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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Finding FITE and resolving open liens.. Posted by steve w on March 17, 2004 at 9:44 PM In Reply to: Finding FITE and resolving open liens.. posted by Ward-CA- on March 22, 2002 at 7:02 AM Ward, thanks for your help. Your forum is very helpful. I followed your instructions below, but I have some questions: 1) In "F". Does the Deed have to be a grant deed or can it be a quit claim deed (in Calif)? In a particular property, it seems the owner owned the home outright and then a few years later, she got married, quit claimed it to her new name and then took a 1st. So, the combo is in tandem w/ the quit claim deed. The tax $ is 0, but the Full value designation box is checked off. On other properties, I found that when they quit claim, sometimes the Full value boxes aren't checked but some are. What is the significance of that check box? 2) In "I". What difference does it make for me buying at the trustee sale if it's an institutional lender or a private borrower? 3) In "T". I found an order number, but it's number is the same as the escrow number. What is the significance of the Title order number? 4) In "E". What is the significance of the Escrow number in this research? In another property I am interested in buying, it's hard to follow all the name changes when going back in time. A "Kathleen B Smith" might be named Kathie Smith, Kathleen Smith, Kathleen L Smith (wrong mid initials), Kathie L Jackson (post marriage), etc etc. I am afraid to make a mistake and miss some liens that might be under an assortment of these names. Is there a safe easy way to make sure I have everything? I am bidding at the auctions and some are auctioning above $200k. Obviously I don't want to buy something with more liens than I know of. I can't afford to make a mistake. What can I do? Thanks again for your help. -- Steve : : Ward, when you say to trace the title back to the FITE - what does that mean? : : Also, I took your advice and went to the county records office armed with a pad of paper, pencil and all the info I had. I did fine researching the record history on the computer database but ran into a wall when the last owner I found of record apparently purchased the property prior to the dates that have been computerized. The prior years are bound by year and name only. Do I now need to go back year by year and search for the year in which the owner was the grantee to the property or is their a clue on the last deed of warranty I found where he is the grantor that would limit my search? : : Thanks for the information you have given me. I much appreciate the help you have provided. : =•=•=•=•=•=•=•=•=•=•= : Cindy, you have to go back in time through the recorder’s title record until you reach a spot where you know that the property’s title was free and clear. Then you come forward and trace each lien, whether it’s voluntary (like a mortgage or trust deed) or involuntary (like an abstract of judgment or federal tax lien) until you find where each was paid off as witnessed by a satisfaction or reconveyance or release, etc. in the name of the original grantor. If you come all the way up to the present and the lien hasn’t been paid off then it is still against the title of the property. After you have searched all open liens you can then establish their relative priority according to their time of recording. : FITE makes up 4 of the 5 ingredients that are required to unequivocally determine you have reached a point in time where the title to the property was free and clear. No need to go back in the title record any further than that point in time. : The first ingredient you must find is a consecutive recording of a deed and a trust deed or mortgage in the title record of the property. Most of us start with the lien that’s in foreclosure and work back from there. When you find a simultaneous recording of a deed and trust deed/mortgage then check them for all ingredients of FITE. If you are lacking any of the 5 essential ingredients (simultaneous recording of the two doc’s is one of them) then just go back to an earlier tandem recording of a deed and trust deed/mortgage until you get all 5 ingredients. That point will be where you can stop going back in time. You have found your point of beginning. : F= Then on the deed see if the FULL value designation is checked off concerning the transfer tax that was paid. : I= Then on the trust deed or mortgage see if the beneficiary or mortgagee is an INSTITUTIONAL lender rather than a private individual. : T= Then check on either the deed or trust deed/mortgage to see if there’s a TITLE order number referenced somewhere in the periphery of either document. : E= Then check on either the deed or trust deed/mortgage to see if there’s an ESCROW number referenced somewhere in the periphery of either document. : I reallly hope this helps. I take 2 hours to demonstrate this setup on the blackboard, so you’re doing extremely well if you can pick it up the first time through without any accompanying dialogue. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Ward, thanks for your help. Your forum is very helpful. : I followed your instructions below, but I have some questions: : 1) In "F". Does the Deed have to be a grant deed or can it be a quit claim deed (in Calif)? In a particular property, it seems the owner owned the home outright and then a few years later, she got married, quit claimed it to her new name and then took a 1st. So, the combo is in tandem w/ the quit claim deed. The tax $ is 0, but the Full value designation box is checked off. On other properties, I found that when they quit claim, sometimes the Full value boxes aren't checked but some are. What is the significance of that check box? : 2) In "I". What difference does it make for me buying at the trustee sale if it's an institutional lender or a private borrower? : 3) In "T". I found an order number, but it's number is the same as the escrow number. What is the significance of the Title order number? : 4) In "E". What is the significance of the Escrow number in this research? : In another property I am interested in buying, it's hard to follow all the name changes when going back in time. A "Kathleen B Smith" might be named Kathie Smith, Kathleen Smith, Kathleen L Smith (wrong mid initials), Kathie L Jackson (post marriage), etc etc. I am afraid to make a mistake and miss some liens that might be under an assortment of these names. Is there a safe easy way to make sure I have everything? : I am bidding at the auctions and some are auctioning above $200k. Obviously I don't want to buy something with more liens than I know of. I can't afford to make a mistake. : What can I do? : Thanks again for your help. -- Steve : : : Ward, when you say to trace the title back to the FITE - what does that mean? : : : Also, I took your advice and went to the county records office armed with a pad of paper, pencil and all the info I had. I did fine researching the record history on the computer database but ran into a wall when the last owner I found of record apparently purchased the property prior to the dates that have been computerized. The prior years are bound by year and name only. Do I now need to go back year by year and search for the year in which the owner was the grantee to the property or is their a clue on the last deed of warranty I found where he is the grantor that would limit my search? : : : Thanks for the information you have given me. I much appreciate the help you have provided. : : =•=•=•=•=•=•=•=•=•=•= : : Cindy, you have to go back in time through the recorder’s title record until you reach a spot where you know that the property’s title was free and clear. Then you come forward and trace each lien, whether it’s voluntary (like a mortgage or trust deed) or involuntary (like an abstract of judgment or federal tax lien) until you find where each was paid off as witnessed by a satisfaction or reconveyance or release, etc. in the name of the original grantor. If you come all the way up to the present and the lien hasn’t been paid off then it is still against the title of the property. After you have searched all open liens you can then establish their relative priority according to their time of recording. : : FITE makes up 4 of the 5 ingredients that are required to unequivocally determine you have reached a point in time where the title to the property was free and clear. No need to go back in the title record any further than that point in time. : : The first ingredient you must find is a consecutive recording of a deed and a trust deed or mortgage in the title record of the property. Most of us start with the lien that’s in foreclosure and work back from there. When you find a simultaneous recording of a deed and trust deed/mortgage then check them for all ingredients of FITE. If you are lacking any of the 5 essential ingredients (simultaneous recording of the two doc’s is one of them) then just go back to an earlier tandem recording of a deed and trust deed/mortgage until you get all 5 ingredients. That point will be where you can stop going back in time. You have found your point of beginning. : : F= Then on the deed see if the FULL value designation is checked off concerning the transfer tax that was paid. : : I= Then on the trust deed or mortgage see if the beneficiary or mortgagee is an INSTITUTIONAL lender rather than a private individual. : : T= Then check on either the deed or trust deed/mortgage to see if there’s a TITLE order number referenced somewhere in the periphery of either document. : : E= Then check on either the deed or trust deed/mortgage to see if there’s an ESCROW number referenced somewhere in the periphery of either document. : : I reallly hope this helps. I take 2 hours to demonstrate this setup on the blackboard, so you’re doing extremely well if you can pick it up the first time through without any accompanying dialogue. 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