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.

Mortgage Company Lost Deed Of Trust

Their creative skills give Coppercrest Funding a unique advantage over other lenders, because they provide direct loans that are underwritten.

Currently, Coppercrest Funding is proud to work with almost 50 active investors. Tax Liens Tax liens have priority over deeds of trust. In other words, instead of outsourcing to obtain their information, Coppercrest Funding personally determines inherent risks regarding specific loans, and establishes appropriate terms and conditions for the loans which they fund internally.

That being the case, it is in the investors best interest to loan through a third party that has the experience to deal with problem borrowers.
The reason is because if you use your Pension Plan or IRA, your income is tax deferred and can increase faster, as you will not have to pay taxes so you will have more money for gaining interest. As you can see there are many legal issues for investors to consider before they invest in a deed of trust. com Chapter 2 - The Basics of Trust Deeds At this point you know that a trust deed is one of the safest investments you can make that offers you a high return, but what exactly is a trust deed? Chapter 4 - Typical Borrowers There are a number of reasons why borrowers require private money loans.

To give you a general idea, most mortgages range from ,000 - ,000.
The TILA was amended in 1994 and was created in respect to loans that are secured by a borrowers principal property. Your check should be given directly to your attorney or the Title Company. _ Three parties are involved in a trust deed V the lender, the borrower and the trustee. This is a fact you wont want to forget should a tax lien appear. 5% compounded annually. _ Stocks can be purchased and sold through brokers.