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Can a beneficiary assign their interest in a real estate to

 

Customer Question

Can a beneficiary assign their interest in a real estate to another beneficiary recorded on 02/16/11, and then file a Notice of Default on January 20 2012 after they have assigned their interest to another almost a year earlier.

 

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State/Country relating to question: California

Already Tried:
I have tried to refinance out of this loan without finding a good loan. I almost close on one, however, I came to discover that the new lender had two year pre-payment penalty on a 12.9 5 interest loan with 10 % fees on this loan. We signed the documents, and then were required to bring $39,000 to close because they cut the value and lowered the loan-to-value ratio that they were lending on. I have since last week requested a reinstatement from the Trustee. The Trustee sale is 07/12/12

Submitted: 288 days and 10 hours ago.
Category: Real Estate Law
Value: $79
Status: CLOSED

Accepted Answer

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Expert:  Dimitry Esquire replied 288 days and 10 hours ago.


Thank you for your question. I will do my best to assist you with your concerns. If you would like me to clarify my answer, I will be happy to do so.


To answer your question directly, a beneficiary, once they assign their interest in the property to someone else, no longer has an interest to assign. As a consequence if this property was assigned in 2011, that same beneficiary cannot re-assign that interest again to someone new in 2012. Only if in the first instance the new beneficiary went back and re-assigned the interest to the original party could the interest be reassigned elsewhere. This does not appear to be a valid transfer, and therefore something that can be legitimately fought and pursued as a void transfer.

Good luck.


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Dimitry Esquire41092.8154672801

Expert TypeAttorney
Category: Real Estate Law
Pos. Feedback: 97.2 %
Accepts: 5116
Answered: 7/2/2012

Experience: Licensed in PA & NJ , specialize in business/contract disputes, immigration, estate creation & admin

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Customer replied 288 days and 9 hours ago.

Can the trustee sale this property on this in valid transfer that was done in 2012 after the recordation of an assignment of interest in 2011. Please advise.

thanks

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Expert:  Dimitry Esquire replied 288 days and 9 hours ago.

The trustee can sell the property if the initial transfer is deemed as invalid or fraudulent, and the transfer is rescinded. The assignment of interest does not transfer ownership, so if ownership is still within the party for whom the trustee was set up, they can still sell the property should they so wish.

For example, if A has a property, and he assigns his interest to B, A remains as owner, but he no longer has the benefit. That ownership can still be sold by the trustee.

Good luck.Dimitry Esquire41092.8789834491

Customer replied 288 days and 7 hours ago.

My point the question is that the county records shows that Venture west Capital as beneficiary of the Deed of Trust recorded on 12/01/10 executed an assignment of Deed of Trust to Golden State real estate ventures on 02/16/11 and then on 01/20/12, Venture West Capital filed a Notice of Default. Please advise if you see any break in the chain of who should be the named as the Grantee on this instrument (NOD) it's showing Venture West as the Grantee and not Golden State who is the Grantee on the Assignment executed on 02/16/11.

Thanks

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Expert:  Dimitry Esquire replied 288 days and 7 hours ago.

Thank you for your follow-up.

The grantee would be Golden State, but Venture may be able to file if they are acting as agents to the Grantee. But if Venture is doing this after recording the assignment and without an agency agreement, they are not a valid party and cannot pursue the default--they are no longer holders of the deed of trust.

Good luck.Dimitry Esquire41092.9392437847

Customer replied 288 days and 7 hours ago.

Venture West was not acting as agent at. In 2010 when the initial Deed of Trust was recorded, Venture west had Westminster as Trustee. On 02/16/11 an assignment was recorded showing me as the Grantor to Golden State as the Grantee. On 01/20/2012, a Notice of Default was recorded showing me as the Grantor and Venture West as the Grantee,. On 02/07/12, another assignment was recorded showing me as the Grantor and Golden West as the Grantee, On 02/15/12 a Substitution of Trustee was recorded showing me as the Grantee and C&H as the Grantee or Trustee of record replacing Westminster Title company. On 06/18/2012 a Notice of Trustee Sale is recorded showing me as the Grantor and C&H as the Grantee. Please do this for me for the last time, see if there is any way that Golden State can move forward on this Notice of Trustee sale started by the Notice of Default file by Venture West and giving the timeline that I have shown above.

thanks

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Expert:  Dimitry Esquire replied 288 days and 7 hours ago.

Thank you for your follow-up.

My apologies but I have provided you with the same answer now three different ways. I really do not see what further I can add to this situation. This appears to be a battle of assignments, and without sitting down and evaluating the whole process as recorded with the county, I cannot really give you a better answer than the one I have already provided.

Good luck.Dimitry Esquire41092.9604796644

Customer replied 287 days and 9 hours ago.

Dimitry, I am disappointed with your last response. You happen to be giving me an answer that I deem off base. I don't know what state you reside in, and if you are familiar with Deed of Trust. It's clear to me that the Assignment of Deed of Trust extinguishes prior beneficiarys's interest. In the Assignment of Deed of Trust recorded on 02/07/12 granted assigns and transfer all beneficial interest. What you said in one of you response was that assignment does not give ownership. I will like for you to explain that to me for the last time. How can one assign all right and benefits with a Deed of Trust and then turn around have the right to file a Notice of Default on the borrower.

Thanks

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Expert:  Dimitry Esquire replied 287 days and 2 hours ago.

I stand by the statement that an assignment does not grant ownership, merely a right to take the benefit of the interest. What specifically would you like to explain further, I am sorry but I am getting a bit confused with the timeline at this point. Please advise, thank you!

Customer replied 285 days and 11 hours ago.

Does an assignment of deed of trust allows for the grantor to still have the right to file for notice of default after the assignment. they actually filed two assignments, i suspect they some faul. the first was on 02/16/11 and a second one from the same grantor to the same grantee on 02/06/12. please explain why two assignments-. my point is that the notice of default was filed in between the two assignments. please advice.

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Expert:  Dimitry Esquire replied 285 days and 10 hours ago.

Thank you for your follow-up. I would do my best to answer directly.

Does an assignment of deed of trust allows for the grantor to still have the right to file for notice of default after the assignment. they actually filed two assignments, i suspect they some faul.
Possibly but unlikely. An assignment might not be a full assignment, where just an actual assignment of interest is provided, but the right to file for a notice remains with the original party. But that is highly unlikely, typically an assignment is a full transfer of interest, not a limited transfer.

the first was on 02/16/11 and a second one from the same grantor to the same grantee on 02/06/12. please explain why two assignments-. my point is that the notice of default was filed in between the two assignments. please advice.
It may simply be an error but without reviewing the actual forms for you, I am not clear as to how I can further clarify simply because I would need to review and sit down with all of the transfers so as to see which assignment was files and recorded first, and whether or not even the first recording was valid, possibly the reason a second assignment was filed.

Good luck.
Dimitry Esquire41095.8199736921

Customer replied 285 days and 7 hours ago.

Are you able to review the document for me and advise on a retainer. The first Assignment was signed by XXXXXXX XXXXXXX as president. The second Assignment was signed by Jason Creb as Managing Member of the same entity after the recording of NOD. The second filing is fishy and raises a flag of some invalidation of the first or may be because of some thing else. Please let me me know if you can be retained. The sale date is on the 12th of July. I do not have much time.

thanks

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Expert:  Dimitry Esquire replied 284 days and 11 hours ago.

Thank you for your follow-up.

My apologies but I cannot advise you, review your documentation, or go on retainer. That would violate my own terms of service with JustAnswer and may violate state bar regulations. I would suggest that you consider retaining local counsel if you are seeking a formal review. Consider browsing the listings at www.avvo.com and www.martindale.com

Good luck!

Customer replied 284 days and 9 hours ago.

Thanks for nothing. Your service is a ripe off. I can't believe you took $79 from me for nothing. What can you say that you did for me to earn that money? Absolutely NOTHING!.....I am not satisfied with this scam! I need my money back ASAP.

 
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