Oakland, CA · Member since 2014 · 51 posts · 4 votes
An investor I was talking to said when he would go to buy Trustee properties that had defaulted and were going to auction, he would first spend hours at the recorders office making sure the owner did not have senior loans that were unpaid, because you are responsible for all seniors loans and liens on a trustee purchase.
But how would you know whether they have a senior loan and if its paid off, where was he finding this info at the recorders office? Because the recorders office does not display the amount owed on a loan or whether its paid off, any ideas how he researched this stuff at the recorders office?
He showed me an example of his research, it showed all the loans a guy had taken out and how much each one was, which were paid off and which were not. I dont get how you get all that from the county assessors office?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
11y
It's simple. The mortgages/trust deeds are recorded, and rank in superiority in the order/date they were filed. When they are paid off, a release/satisfaction is recorded. The recordings show the original amount of the mortgages, calculating the current balance is an educated guess.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
11y
The recorder won't have info on the balance owed. But the recorder should have a document showing that a loan was paid off. In my area such a document is either a Satisfaction of Mortgage or a Mortgage Lien Release. In some places it is called a reconveyance. You want all senior position (usually older in time) loans to be paid off.