How do record a 2nd mortgage - Los Angeles County

Question

We are offering a 2nd mortgage to private lenders on our investment property in the city of Los Angeles for our remodel costs.  Does anyone know the process for recording that?  I was told it is done on the county level.  Any tips would be appreciated.

Joshua McGinnis · Answer

An escrow company should be able to easily do this for you. PM me if you'd like a referral.

Allan Glass · Answer

Hi @Alma  Mills

there are a plethora of attorneys on bigger pockets, i'm surprised someone hasn't chimed in...  try starting a post requesting the help of a Los Angeles area attorney.

best of luck

A

Account Closed · Answer

If it's a straightforward note and deed of trust, I would skip the attorney.  Is the "private lender" friends or family? Do they understand the risks of being in second/junior position?

The lender can call a title/escrow company of their choice to have them do a refi escrow, and have them issue a lender't title policy.  You should be prepared to pay for both the escrow and title insurance the fees.  Escrow will do all the paperwork correctly, collect and disburse the funds, and record all the docs.  No need to get an attorney involved unless the terms or situation is more complicated.  Again, just my opinion and the way I do it.

Steve L. · Answer

Plan B would be doing it through an escrow office.  You will have to pay title insurance and escrow fee.  Likely about $1,000 depending on the amount you are borrowing.

I just prepare the documents myself and call my title rep to record them for free.  But in this case your investor won't have title insurance and they need to understand the risks that come with that.

Joe Moore · Answer

Join Legal Shield and they will advice you and make a contract for you.  There will probably be a fee for the contract.  You can also Google for a 2nd trust deed for California and use that and have Legal Shield attorneys go over it first.  This will be a less costly route to go. Wishing you the best.

Alma Mills · Answer

Thanks Allan, I appreciated your podcast recently.  It's good to hear someone talking about the Los Angeles area.  So what do you think is the best way to find a quality but reasonably priced RE attorney?

Allan Glass · Answer

Hi Alma,

Step1:  hire an attorney who can properly draw your promissory note and trust deed

Step2: call and hire your title company to ensure that it is properly recorded (and insured) at the County Recorder's office in Norwalk.

that simple...

How do record a 2nd mortgage - Los Angeles County

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