Dangers 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 execution) 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

Go to our Trust Deed Investment form to fill out your information and  to be added to our list of investors.Then we can send you what Trust Deeds are  available according to your parameters.

Finding Hard Money Lenders in California has its challenges. A time saving key would be to ask the question, are you a direct hard money lender? If not, you are working with a broker who may or may not  know a sufficient amount of Hard Money Lenders to shop your loan to. You need that variety of individual investors, to have a successful close, and to find the right hard money lender in Calif.  You may also be  adding  costs by paying more than one broker.

If it is taking more than 3-4 days to get a commitment, you are most likely barking up the wrong money tree.

If they are more interested in your credit and income documents, verses your property, you may not be at the right place either.

A private investor, will drive the property within a few days if interested, and it usually is a sophisticated hard money lender, knowledgeable in real estate values. A private money lender is represented by a Broker, who handles the loan process for him. Appraisals are usually not required in this market by our investors. You certainly do not need to pay up front fees, except if an appraisal is requested. Hope that helps.

Any questions Call Colleen 661-251-9075 or to apply on line go to California Hard Money

Originally posted on activerain.com/blogs/colleenls

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The market is sure changing. I still think trust deed investments are the safest vehicle to grow your nest egg. I practice what I preach. I look at my stock portfolio and find it takes a lot of effort to remain the optimist. My trust deed investments are a calm in this storm. However just as one picks good and bad stock, you may have some trust deed investments that are not trouble free. Although I personally never lost money on any. Read the rest of this entry »

If you have equity in your commercial building we have simple, fast process to get you the cash you need with our hard money bridge loans. These are short term hard money, private investor funds. For quick purchase money or if your property is  listed,to buy you time to sell, the hard money bridge loan is the answer. New construction take-out hard money bridge loans available. We will take 1st or 2nd position. Minimum $200 to 5M. Our hard money underwriting for these short term loans is up to 65% Loan to Value. Read the rest of this entry »

We have some aggressive private investors willing to fund short term hard money loan scenarios that other hard money lenders won’t. We are providing funding to pay off construction loans,and give the borrower/builder  time to sell. Commercial or Residential. No O/O.These hard money bridge loans are for projects that have up to 65% equity after our loan is placed.  We can take 1st or 2nd position. Loan amount not to exceed 5M. Minimum depends on private investor and hard money loan scenario. We can also save your purchase money loan, that is out of time, but still only up to 65% LTV. Large downpayment would be required. Another scenario would be a loan matured but borrower needs time to clean up credit issues before he can refinance. Just call and I can discuss  with you if we can help with your hard money scenarios.

Colleen Bigler

We’re announcing the launch of the Loan Solution blog as an accompaniment to the loan-solution.com website. Please stay tuned for mortgage loan information for borrowers, brokers and trust deed investors.