Chapter 9 - Lien Priority

You may or may not be aware, but a deed of trust is actually a lien on a piece of real property. What is a lien? A lien is a legally recognized claim or hold against one persons item by another which utilizes this item as security for a duty, debt or obligation. If there is more than one lien on a piece of real property there could be a number of reasons for this. Some of the liens an investor may encounter include:

? Tax liens
? Mechanics liens
? IRS liens
? Judgment liens
? Etc.






A few interesting facts about liens
It is important for you to know that liens in first priority are the most ideal. Therefore, in order to obtain this priority, this needs to be verified before the closing of escrow. In order to obtain the accurate information that is required to verify the priority of the deed of trust, you will find that Title insurance policies will provide you with what you need to know.

If it happens that an error is made, or a lien has been overlooked and such aspects affect the trust deed holder, then the holder can take legal action against the company that issued the title insurance policy.

When the holder is in possession of the priority lien, they can foreclose and any junior lien holders wont be able to stop it. That being said, there are ways in which junior lien holders can protect themselves should this happen.

To begin with, they can make certain that their lien has been accurately recorded with the county recorders office. They can also inform all senior lien holders about their lien, and ask them for written notification before they foreclose.


Tax Liens
Tax liens have priority over deeds of trust. This is a fact you wont want to forget should a tax lien appear. Thus, in order for the investor to protect themselves in the event of a tax lien, a provision should be added in the trust deed and note that explains if the borrower and their property have or will receive a tax lien; it is the trustors responsibility to contact the investor.

In addition, the note should provide the investor with the choice of needing the payoff, so that they can protect their principal from foreclosing on the tax lien.

Arizona Non Titled Spouse Need To Sign Deed Of Trust

Currently, Coppercrest Funding is proud to work with almost 50 active investors.

Chapter 9 - Lien Priority You may or may not be aware, but a deed of trust is actually a lien on a piece of real property. In short, Coppercrest Funding provides lending investment opportunities known as a Trust Deed. However, although there is always some degree of risk involved when making an investment, trust deeds happen to be one of the safest investments available today, because unlike other investments, a trust deed is secured by actual property V homes, buildings and land. When the holder is in possession of the priority lien, they can foreclose and any junior lien holders wont be able to stop it.

This multi-lender law has certain restrictions which it can impose on the investor.
The holder of this not is protected by the law, as they are considered to be in good faith holding this negotiable note. Coppercrest Funding, is one of Arizonas leading sources of non-institutional, short term real estate loan providers, is a dynamic and professional company that specializes in providing real estate loans that are not usually obtainable by conventional lenders. Here are a few of the basic advantages that investing in trust deeds offers you as an investor:1. Escrow is a specific process in which a title of transfer and a funds transfer take place via a neutral third party during a real estate transaction.

It is also their responsibility to enforce on the borrower the loan agreement terms, so they respond in a proper and timely manner.
Thus, escrow closes when every condition of the escrow instructions have been met or waived, the documents have been recorded, and the funds have been released. Thus, it is highly recommended that if you do decide to lend to either of the above mentioned entities, you require a larger money down payment and/or a lower Loan to Value. Ultimately, the choice is yours. Note Without Recourse V If this note is written above the signature it implies that future holders will not be guaranteed payments. Make sure you understand all legalities concerning trust deeds before you make your investment.