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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 33802
Experience:  15 years real estate, Realtor. Landlord 26 years
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I hold a recorded Original Deed of Trust on land loan

Customer Question

I hold a recorded Original Deed of Trust on land for a loan of $150,000. I just noticed the pay-off date listed has expired and the note isn't paid. Is the Deed of Trust now invalid?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Barrister replied 1 year ago.

Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.
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I just noticed the pay-off date listed has expired and the note isn't paid. Is the Deed of Trust now invalid?

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How long ago did the DOT expire?
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Do you also have a signed Note for the debt?
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thanks
Barrister
Customer: replied 1 year ago.

Deed of Trust is dated Feb 19 2010 and maturity date of loan is

Feb 19, 2011. Then we agreed to a much lower monthly note and rolled over that date verbally. He paid for about 2 yrs and then overdraft checks started coming and then numerous hot checks

and finally a notice that bank account was closed. More hot checks. I have all these.

I also have a Real Estate Lien Note with the same due date on it--

Feb 19, 2011.

The property I took a lien on, as it turns out, is worth only 1/3 of the loan amount.

I let this ride until recently because of friendship (and stupidity).but he says the lot is being built on and will close in about 60 days and I'll be paid. That's why I want to be sure the documents are still valid.

Expert:  Barrister replied 1 year ago.
Ok, from a purely legal prespective, the statute of limitations on a promissory note or mortgage is 4 years after the note or mortgage comes due.
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So if the Note came due Feb of 2011, then it would now be unenforceable due to the 4 year statute of limitations running.
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The Deed of Trust would also be unenforceable since it is even older...
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With that said, if his last payment was less than 4 years ago, you could still sue him personally for the debt under a breach of contract claim, but the DOT and Note would not be enforceable against the land any longer.
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I am very sorry that I don’t have better news, but please understand that I do have an ethical and professional obligation to provide customers with legally correct answers based on my knowledge and experience, even when I know the answer doesn’t make the customer happy...

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thanks
Barrister

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