All Forum Posts by: Larry Bowers

@Hal Thompson

Thanks, Hal.
So in third grader lingo, in MO, a pure-notice state, if my DOT as a lienholder is recorded in the wrong county but I put the title company on notice that an error was made, I have covered myself against a third party grantee taking title to the property and wiping out my lien, because I was "first-in-time"?

@Kyle J. Now I know I can ask for them if I am suspicious with residential rentals. "Trust but verify" as Reagan said. 

I made a secured loan on a house in Missouri, but borrower stopped paying. The house is newly refurbished, in a desirable area, is vacant, and is being marketed now for a tenant. New “white goods” like a range, microwave, fridge, etc. are in the house. I will probably get the house after the auction. 
Shall I have someone poised to change the locks? Same day as auction or if later, then when?
Do those white goods become mine?

@David Song

Ok, thanks. I sold a 4-plex building a long time ago, but I just had to provide the lease with the tenants. The residential tenants in this C- property were never involved. 

I should have been clearer about what I want to know.

In this case, I mean a residential property that is rented that is being bought for purposes of keeping as a rental. Will the real estate agents involved and the seller think that asking for an estoppel certificate on a SFH rental is ludicrous? Or is just not done? @Joel Owens @David Song

@David Song

I read about estoppel certificates and get the concept. Would it be out of line to request them as a buyer in a residential (fourplex or less property), or is that overkill and/or just not done?

@Elvis Vasquez

I was newbie that was schmoozed by the borrower. I was eager to enter the fray and didn't underwrite these so well. He did make the payments for the first 8 months. Then he went dark. 

@Tom Gimer

Title company recorded it yesterday afternoon, hooray. Title company is also doing a updated title report for free. If another lien is found, that is higher than mine because of the delay, that would be their E & O insurance? Seems like a textbook case to me. 

@Hal Thompson

What about Missouri? Is that one of the "race recording states"? 

And IAMNAL but:

For this quote you put about Colorado, am I interpreting it correctly that the intent to record the DOT counts for something...that the lien position would be the same as if were recorded in the correct county?

As long as the creditor brings the error up prior to the sale, the DOT will fall into the seniority positon place if it were recorded correctly?

Or am I way off? 

@Tom Gimer  

Finally, some good news. Tom, is this a universally accepted practice in all states or counties to re-record a document without a hassle?

If there is a lien put on the property between the erroneous recording and this re-recording and my lien is now third or further down, would I then take this up with the title company? 

New here to BP and note investing, and getting baptized by fire. What a pickle I am in. I need advice!

I am the lender on a $50K note that began in early 2017. The note listed a property in its text, but it was not secured. I know that was not wise, but I did correct course: about three months ago, the amount was secured by a deed of trust, but the title company recorded the DOT in the WRONG COUNTY. I just found this out yesterday. I suppose I am not secured after all.

In the meantime, things have gone sour with my borrower; he hasn’t paid me in four months. He is ducking me and being intentionally obtuse. I suspect bad faith on his part if I don’t take action.

As far as he knows, the deed is recorded and he is on the hook to eventually pay me. But if I want to foreclose, I assume the deed of trust must be recorded in the correct county. However, the request to sign a new DOT would alert him that I don't have any leverage. I expect with that knowledge that he would then disappear entirely.

If it matters, the deed was supposed to be a second lien and this is in Missouri. If I could foreclose, yes, there is enough room for me to made whole, even as second lien.  

Is there anyway that I can either get this recorded in the correct county without alerting the borrower? Or is there an E & O insurance the title company has to cover me for their mistake? It’s not my fault the title company recorded the deed in the wrong county.

I haven’t started firing salvos at the borrower or the title company yet. I am coming here first for wisdom. Thanks!