Owning Property under another person's name?

[Disbelief2]

What is the name of your state (only U.S. law)? California

Hello-
I am new to the forum, but have a straightforward question. I recently discovered that a person I loaned a large sum of money to ($165,600) has tranferred one of her houses into another person (non-relative) name to protect it from creditors.

I was told that this is illegal? If so, what can I do about it? Who examines or enforces this part of the law? How do I prove the matter at hand? There is a clear conspiracy at hand with these 2 parties who have several creditors in their pursuit.

I thank you in advance for your consideration.What is the name of your state (only U.S. law)?

 

[tranquility]

Google "fraudulent transfer".

(Keep all your questions in a single thread. All the information is important.)

 

[Disbelief2]

I appreciate the link to Google. It had some useful information. What can I do to verify this information? And who/what agency do I inform of this fraudulent transfer? Can I represent myself on this matter? I think that due to the loan amount I must file the matter in Superior court--correct?

Again, my sincere gratitude.

 

[seniorjudge]

You bought title insurance on the mortgage you gave her, didn't you?

Did the mortgage prohibit selling the real estate?

Has the borrower defaulted on the loan?


Answer those three questions.

 

[justalayman]

OP hasn't ever said they had a lien on the home let alone an actual mortgage. OP hasn't even said the loan was for the purchase of real estate.

Unless the transfer directly affects the OP (such as a property OP had a lien or mortgage on), OP has nothing to do with what happened.

 

[Disbelief2]

Thank you for your responses. This was a personal loan not a mortgage. The funds were used for various matters, but not in the purchase of a single property.

The borrower offered 2 property's as collateral. I am in junior positions on both. One of the properties has been foreclosed upon. The other property continues to be rented (5 units) and pays the first mortgage. I have $50,000 note on this property in a second position. The total amount was for $165,600 and now $115,600 is not secured by any deeds. The borrower has not made any interest or prinicpal payments as called for in the note.

The title company drew up the notes was here regular title company and I was given all the documents with notary seals before she signed. Not sure what to do, but I know that I am in trouble, because this lady has done this to 2 other people (that I have discovered). No title insurance was issued, of course.

I found out about the house she owns in the names of her cleaning people, who are church friends. They appear to be very modestly educated and I doubt that they have ever read any of the documents she had them sign.

Please if you have helpful tips on how to proceed, I am open to your comments. I know this is not a good situation. Should the 3 people who lent money collaborate in a single law suit? I thought my best course of action here was to sue and place liens on all of her remaining properties. Her son has signed a promissory note as well and has a garnishable income.

Please, any suggestions???

 

[seniorjudge]

You bought title insurance on the mortgage you gave her, didn't you?

Did the mortgage prohibit selling the real estate?

Has the borrower defaulted on the loan?


Answer those three questions.

After I read your answer, I'm more confused than ever.

If you don't have a deed of trust/mortgage as collateral for your loan, then she can sell the land to whomever she wishes.

But I think you may be saying that you have SECOND deeds of trust/mortgages. If that is so, and the first forecloses, then you lose your collateral. I'm not sure if your state's laws would allow you to sue on the promissory notes.

Anyway, if you'd answer my questions clearly, maybe we can make some progress here.

 

[Disbelief2]

I apologize for the confusion. Let me elaborate:

I loaned $165,600 to this woman (a personal loan, not a mortgage) that she secured by 2 separate SECOND DEEDS of Trust. One of the properties has gone into foreclosure by the FIRST DEED of Trust. The second property has no equity available, but she continues to collect the $7,000+ rent each month and pay her first deed. I am in the second position for $50,000 on this property.

The deeds of trust were given as collateral, not as a mortgage.

I hope this helps and I hope that you can lend some advice in this painful matter.

 

[Andy0192]

Out of curiousity, did you consult with your own attorney before lending someone $165,000 ?

 

[seniorjudge]

...I loaned $165,600 to this woman (a personal loan, not a mortgage) that she secured by 2 separate SECOND DEEDS of Trust...The deeds of trust were given as collateral, not as a mortgage...

These statements are contradictory.

Sorry, but I can't help you because I can't tell what the problem is.

 

[justalayman]

I apologize for the confusion. Let me elaborate:

I loaned $165,600 to this woman (a personal loan, not a mortgage) that she secured by 2 separate SECOND DEEDS of Trust. One of the properties has gone into foreclosure by the FIRST DEED of Trust. The second property has no equity available, but she continues to collect the $7,000+ rent each month and pay her first deed. I am in the second position for $50,000 on this property.

The deeds of trust were given as collateral, not as a mortgage.

I hope this helps and I hope that you can lend some advice in this painful matter.

you are confusing a mortgage and the loan which the mortgage is used to secure an interest for the loan.

Your deeds of trust act in place of a mortgage. I think you are under the belief that a mortgage is the loan itself. That is not true.

 

[tranquility]

I agree the OP needs to see an attorney.

 

[seniorjudge]

OP, foreclose on YOUR mortgage(s) if she's in default.

Get a lawyer.