Filing A NOD

[TrustUser]

that is the problem. there was fraud sent to the title company, cuz the loan agent knew we would never lend money with a lis pendens ahead of us. this was supposed to be a first trust deed. the pendens was filed in 2020. our loan wasnt made until 2022. the loan agent is the same company that was placed in bk. as far as i can tell, both of them are huge crooks.

at least with this lien, it says A pending Court Action as disclosed by a recorded notice: . and then it clearly delineates the plaintiff and the defendant

so it sure makes it seem like the plaintiff is the one who is responsible for recording it.

 

[TrustUser]

anyways, i dont really care about who is filing it. we can sue the husband - he is a crook. if it is awarded to the wife, and she is ahead of us, are we wiped off the books ?

 

[Taxing Matters]

that is the problem. there was fraud sent to the title company, cuz the loan agent knew we would never lend money with a lis pendens ahead of us. this was supposed to be a first trust deed. the pendens was filed in 2020. our loan wasnt made until 2022.

Did you not get a title report and discover the lis pendens before making the loan? If you plan to have real property as collateral for a loan you are making then getting a good title search is critical. Not doing that risks having a lien on a property that your judgment holder does not own and as you were on constructive notice of the pending litigation, you took the risk that something like this might happen. If you got a title search and it missed the lis pendens, you may be protected by the title insurance you obtained.

anyways, i dont really care about who is filing it. we can sue the husband - he is a crook. if it is awarded to the wife, and she is ahead of us, are we wiped off the books ?

No way I could answer that without looking at all the relevant documents, including what judgment the court actually makes and looking at the land title records in your county. If the lien you filed is against the husband's interest in the property and the court says the house belongs to the wife, the details of that ruling would be important. Moreover, there are things the court may do to protect your interest in the property once it determines ownership.

 

[TrustUser]

there was a prelim done. all that stuff is supposed to be taken care of. the loan agent represented it as a first trust deed. that means that all liens are paid off. then the agent sent a document to the title company telling them that we were okay with the pending litigation. as i said, no lender on the planet would make the loan with an undetermined amount ahead of them. an egregious error by the title company. they should have known better than to accept such a document.

there was never a mention of the pending litigation to us. it was just total fraud inside and out.

the lien that we filed was just against the property, itself. just like any other loan. if they give it to the husband, we can go after him by suing him for the fraudulent document he and his partner sent to the title company. the wife did not do anything to us, as the pending litigation document was filed way before we stepped in. so she did nothing to us.

your last statement gives me some hope, with regards to the divorce proceedings

i think we will be successful suing the title company, if they decide not to pay us for their error. the highest level of incompetence i have ever seen in all of my many real estate dealings.

if you dont lend money on a regular basis, you may not get it. BUT ABSOLUTELY NO ONE is gonna lend money with a lien ahead of them that has no amount attached to it. it is absolutely absurd.

nowadays, with everything being esigned, it is easy to grab an e-signature, and apply it to a document. but like i said, a title company should know this. and i am referring to a subsidiary of the biggest title company in the country.

 

[TrustUser]

you could accuse all 3 of us lenders as being a little too lax and trusting, as none of us saw the pending litigation. but the title company was aware of it, as they accepted a fraudulent document from the agents saying that we were okay with it.

no one would be okay with that loan, with the dollar amounts that were there, with that pending litigation. NO ONE. i only saw it, because we got a new prelim done, for a totally different reason, as it looked like the trustee was gonna release it back to us.

this is the personal residence of one of the loan guys, whose separated spouse is now living in it. so they knew about it.

and just to let you what sort of creeps they are - this same person got a 250K second behind us, and sold that to an investor group that he heads. there was never that much equity in it, that that would have ever been a safe loan. they will almost for sure both end up in jail. but that doesnt get me and my partner's money back to us.

and they cheated the investor group that started the bankruptcy procedure on them out of millions. there are so many people suing these guys it is almost laughable, if i dont cry first - LOL.

 

[TrustUser]

Moreover, there are things the court may do to protect your interest in the property once it determines ownership.

i take that to mean that properties would be distributed, based upon the equity in them, rather than the value. so a 100,000 house with a 40,000 mortgage has a value of 60,000. and it is the 60,000 that is taken into effect when the judge makes an equitable deal.

so in my case, our liens would stay, and bring down the equity in the property distributed to either the husband or wife

 

[LdiJ]

i take that to mean that properties would be distributed, based upon the equity in them, rather than the value. so a 100,000 house with a 40,000 mortgage has a value of 60,000. and it is the 60,000 that is taken into effect when the judge makes an equitable deal.

so in my case, our liens would stay, and bring down the equity in the property distributed to either the husband or wife

Yes, it is the equity in a property that is taken into consideration in a marital settlement, not the value in most cases. However it is possible to take the value and the debt as separate items, with both included in the settlement as separate items. A net worth statement would list the value of a property as one item and the debt on the property as a separate item. The end result would be the same either way.

Generally, if a judge distributes a property in a divorce, generally the person getting the property is also responsible for any debt associated with the property, assuming of course that that everything was on the up and up with the occurance of the debt.

What you generally wouldn't see however, is a case where all of the debt was incurred by one party only, but the property was distributed to the other party. The party with the debt would generally push for the property to be sold, the debt paid off, and the net proceeds distributed, rather than trust the other party to continue to make debt payments in a timely fashion. The party with the debt wouldn't want their credit scores to be dependent on the whims of someone else.

 

[TrustUser]

thanks ldj, that sounds encouraging

this may need tm, i dont know. but it has now been suggested to me by 3 separate people (paralegal, and others involved in the whole shebang), to contact the attorney to see if he can remove the lis pendens

i have never seen a lis pendens before, and know nothing about divorce, except to stay away from legal marriage, in the first place - LOL. no reputable loan agent would ever represent a loan to an investor with that on it. nor could he ever get someone to lend money. so this is as new as a baby's bottom to me.

this is california. does anyone know if a tentative court action only applies to the attorney that had it placed there ?

i have already reached out to the attorney for the wife that i think placed it there - they are on their 4th set of attorneys - so you can imagine the hornet's nest of a case this is. the attorney is out of the country, so i did send an email yesterday

 

[TrustUser]

text from defendant's first attorney -
The attorney who recorded the lis pendens can remove it but it is doubtful they would do so until after the divorce is finalized and all the property divided. The lis pendens is a notice that the property is subject to the ongoing divorce so its not only to a particular attorney but the property and action itself.

 

[doucar]

text from defendant's first attorney -
The attorney who recorded the lis pendens can remove it but it is doubtful they would do so until after the divorce is finalized and all the property divided. The lis pendens is a notice that the property is subject to the ongoing divorce so its not only to a particular attorney but the property and action itself.

That is correct.

 

[TrustUser]

would it be a good idea or bad idea to first contact the california department of insurance before proceeding with a law suit ?

 

[Taxing Matters]

would it be a good idea or bad idea to first contact the california department of insurance before proceeding with a law suit ?

Contact the Department for what purpose? What do you propose telling the Department?

 

[TrustUser]

i figured it was probably a waste of time, but it wouldnt hurt asking the forum. If you believe all or part of your claim has been wrongfully denied or rejected, you may have the matter reviewed by the California Department of Insurance.

 

[LdiJ]

i figured it was probably a waste of time, but it wouldnt hurt asking the forum. If you believe all or part of your claim has been wrongfully denied or rejected, you may have the matter reviewed by the California Department of Insurance.

Have you made an insurance claim that has been denied or rejected? Has that officially happened? I know you were talking about a claim via the title company but if the claim hasn't been formally made, AND formally denied, then there is nothing for the California Department of Insurance to review yet.

 

[TrustUser]

yes, we have an official denial from the title company