California Property Taxes are out and due November 1, 2023
Friday, November 10, 2023 is Veteran’s Day (Observed Holiday)
No Fundings, No Recordings
YOU HAVE QUESTIONS, WE HAVE ANSWERS!
VIVA ESCROW Q & A SEGMENT
(Real questions sent to us – verbatim!)
What happens if an LLC has a deed of trust on my property and the LLC has been defunct for over ten years?
( I answered a question much like this one in my July 2023 newsblog, which goes to show you, these types of different payoff issues happen all the time!)
In order to clear this lien from your property you will need to do one of the following:
- Locate the original LLC members and ask them to return the original Note and Deed of Trust to you and have a Request for Full Reconveyance signed so that the Trustee can issue the Reconveyance. A defunct LLC doesn’t have the right to transact new business, but a Trustee might not look at signing the Request as “new” business.
- If you cannot locate these original LLC members, then you will be unable to clear your property of this lien. If you are selling, you will need to obtain a Lost Beneficiary Bond from a specialized bonding company. They will ask you for all the loan and LLC information and paperwork that you have and also any proof that you have tried to locate the LLC members by sending them registered mail, etc.
For your information, to locate any member or designated agent for processing for this defunct LLC or any other corporate entity, you can try to get any information that the Secretary of State might have under their Business Entities Search section – https://www.sos.ca.gov/business-programs/business-entities
What is the first thing you do when you pay off a loan from a private lender, whether an individual or any type of corporate entity? You get the loan docs that you signed back!
When the loan is paid in full, contact the lenders immediately and get the original Note (and Deed of Trust) back. Have the lenders mark and sign “Paid in Full” on the Note and get them to sign a Request for Full Reconveyance form if this loan was secured on your property with a Deed of Trust.
You forget, or you wait, and the private individual lenders might have passed away, or LLC/Corporation members disbanded and you are left trying to get a release.
Remember, if a loan was recorded on your property, it will require a reconveyance to “unrecord” it or you will be stuck with it forever!
Here is an article on our Viva Escrow website that illustrates reconveyance issues that we are faced with from time to time. https://www.vivaescrow.com/when-reconveyance-issues-pop-up/
And if you have special issues, contact the Escrow Officer who did your transaction for help.
~ Video of the Month ~
I can relate to this one:
“Just did a week’s worth of cardio
walking into a spider web”
What about you?
~ Quote of the Month ~
The game of life is the game of boomerangs.
Our thoughts, deeds and words return to us sooner or later,
with astounding accuracy. –
~ Florence Shinn, Writer (1871-1940) ~
Explaining California’s Property Taxes
(Because it is that time of the year)
You Have Questions? We Have Answers!
Juliana Tu, CSEO, CEO, CBSS, CEI, SASIP
“Escrow is my FOREMOST language!”
The opinions expressed in this blog are solely the author’s.
Your comments and viewpoints are always welcome.
Info @ VivaEscrow.com