I hold a 2nd Deed of Trust against a property in California. The property owner is way behind and I've started the Notice of Default proceedings. The property owner has requested that we do a Deed in Lieu of Foreclosure and that I not report this foreclosure to the credit agencies.

Given the amount of the 1st Trust Deed, I would be interested in renting the property and keeping this property to service the 1st mortgage. However, I'm wondering if this property will be re-assessed. It's in California and has a very low property tax basis.

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Originally Posted by fragrantgas

I hold a 2nd Deed of Trust against a property in California. The property owner is way behind and I've started the Notice of Default proceedings. The property owner has requested that we do a Deed in Lieu of Foreclosure and that I not report this foreclosure to the credit agencies.

Given the amount of the 1st Trust Deed, I would be interested in renting the property and keeping this property to service the 1st mortgage. However, I'm wondering if this property will be re-assessed. It's in California and has a very low property tax basis.

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Hi
Starting from your last question, I would suggest to contact the Tax Assessor in the County in which the property is located and ask them that question in addition to finding out if there is any lien on the property. I would call the title Company too to find out if there are any other blemishes, such as liens or else on the property, order a property Profile or a Preliminary Title Report. Find out if they are current on the First Deed of Trust!

I would get a real estate attorney involved before I would do anything. A deed in lieu of foreclosure is per se OK but you need some legal advice before you go ahead. It could be simple and crystal clear but it could also hide some pitfalls. Do your homework.

Find out about the occupants if they are different then the present owners/trustors(the people who signed the note and deed of trust).

Get also a hold of a Realtor to help you out in the area were the subject property is located if all of the above seems overwhelming. Definitely Get some legal advice on the subject, protect your assets! Vcavina

I will agree with all of the above, you will need to find the status of the first mortgage, are they 4 months behind there?

Next can it be assumed ? Or once the property transfers will that mortgage become due in full ? ( these can all be terms)

Next what you also have to understand if they were living in the home, they may have had a homestead exemption on their property tax, and as a rental property that would not apply. So at least that part of the tax would change.

And beyond just calling the title company you need to have a new title search done. But if you want the property, this is a good way to take it over if all the other "ducks" are in a row.