Dangers To Avoid When Investing In Trust Deeds in California
Posted July 11th, 2010 in Trust Deed InvestorsDangers To Avoid When Investing In Trust Deeds in California
Dangers to avoid when investing in Trust Deeds in California. Title company errors can cause you problems with your Trust Deed Investments and purchases. You must double check them. I have caught many errors over the years. Real Estate crime has gone wild. The DA’s office is overwhelmed.
I gathered information I uncovered, on a fraudulent Trust Deed Investment- loan request. I contacted the DA’s RE fraud dept. I was told because the “seller” was deceased( prior to the quit claim deed exec
ution) there was no victim. The criminals could of been caught with check in hand and arrested, but I couldn’t get a detective interested. We just canceled the loan requested. The broker who sold the previous Trust Deed wasn’t interested either. He told me he will just sell in a Trustee Sale, his investor will be paid and nothing will happen. The last title company who insured the transfer, never returned my call after informing them of the fraud. So the criminals will move on to the next victim, a Trust Deed Investor or buyer or homeowner or a bank. There wil be another Trust Deed Investment Scam.
What could of been done to prevent that?
In the above case, there is an affidavit the Title company is suppose to request when a Title is transferred without prior Title Insurance. The seller is to sign yes- in fact he transferred the property. He did in fact sign the deed. In the above case they didn’t ask for it, even though the red flags were waiving. Elderly person quit claims to a non- relative on a free and clear property. He forged the quitclaim. The recorders office will record anything signed with a notary stamp. When it went to assessors office to change ownership, there was a note, “dead women came alive” need to investigate. However they did not pull it but let it go through and changed the title to the new owner.The new “owner” then gets an all cash out loan, on stolen property. This is an example of the dangers to avoid when investing in Trust Deeds.
I have heard of many different cases involving fraud with Trust Deed Investments this year that could of been prevented. You need to make sure your Hard Money Broker cares enough to do his due diligence and be aware of the situations where criminals can enter your life. Regarding your Trust Deed Investment’s safety-the Title company who made the error, will probably, eventually, (year or so) pay the claim. However you lose interest and all the stress and time of dealing with the situation.
This lesson on dangers to avoid when investing in Trust Deed Investments in Calif., if there was no Title Insurance on any of the recent transfers, insist on the previous seller to be located. Have escrow have them sign the declaration with a known Notary, before you close. In the case above there was Title Insurance on the last private mony loan. However the Quit claim Deed was not insured prior to it. Another warning, the forged notaries, that is another story….Something can be done about this though; prevention is worth a pound of cure. Choose your hard money broker well, fund only verified Safe Trust Deed Investments and ask questions.
To find more tips to avoid the dangers when investing in Trust Deeds in California -Check our upcoming bogs at the web site. Loan-Solution.com
Call Colleen Bigler at Loan Solution Inc. 661-251-9075 Owner/Broker. Email Colleen@loan-solution.com
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