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Trust-Deed Investing
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Why Trust Deed Investing
Many investors are looking for opportunities to create more monthly income
while simultaneously maintaining a secure, diversified portfolio. A trust deed
investment is generally considered to be a fixed-income investment. Trust deeds
are mortgages secured by real property and when properly underwritten and
managed provide a good investment alternative for the income-producing portion
of an investment portfolio. Fixed income investments are an important part of a
well-diversified portfolio. Fixed income investments pay interest at specified
amounts and are usually issued by a corporation, government sponsored agency,
or municipality. Trust deed investing offers many investors another method of
diversification
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to help reduce volatility in their portfolio and generate additional income.
Historically, trust deed investments have outperformed cash investments (bank
deposits, CDs, money market instruments, and US Treasury bills). Trust deeds
also offer less volatility than stocks. Although stocks can offer high returns,
they carry much greater risks.
Consequently, adding trust deed investments to your portfolio can increase your
overall return and lower the overall risk of your portfolio.
Trust Deed Investing in California
All Valley Trustee Service also has an affiliate that specializes in the
placement of residential and commercial private money loans to California
property owners. We have deep experience in California real estate lending and
sales expertise. We can provide you with secure 1st, 2nd, or 3rd trust deeds
that meet your qualifying risk criteria.
Our clients are in need of hard money loans across the state of California for
both the purchase and refinance of owner-occupied and investment properties, as
well as commercial properties and land loans. All client and property
credentials are carefully screened and processed to ensure your utmost
confidence. A 1st, 2nd, or 3rd Trust Deed, Promissory Note, and Title Insurance
in your name secure all loans, with property valuations by appraisal or
strongly documented comparable sales at your discretion.
We are seeking to add qualified professional trust deed investors to our
network, particularly for northern California real estate, though we welcome
investors for all areas in California.
We are also qualified, experienced, and capable of loan servicing your
investments for a low monthly fee. Please call us for details.
If you have funds allocated for investing in California trust deeds, we would
be very interested in discussing a business relationship with you.
We know that a defaulted loan ties up your capital. So, All Valley Trustee
starts processing your California foreclosure immediately, and completes your
foreclosure as quickly as legally possible.
All Valley Trustee is a “one stop shop” foreclosure trustee company serving
private investors, lenders, and loan servicing companies specifically in
California. We offer a wide range of trustee, legal, and property liquidation
services, including:
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Management of Foreclosed Properties
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Legal Services, including Evictions, Judgment Collection and Bankruptcy Stay
Relief
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Marketing and Sale of Foreclosed Properties
The California Foreclosure Process
1. Notice of Default / Reinstatement Period
California foreclosure proceedings are started by recording a Notice of Default
(NOD) in the county in which the property is located. This recording of the
Notice of Default gives "Constructive Notice" to the public.
After the recording of the Notice of Default, in the state of California, the
borrower and junior lien holders are given proper notification and the borrower
has 90 days to bring their account current. This period is referred to as the
Reinstatement Period. Many foreclosure proceedings are reinstated during this
3-month default period. The borrower or anyone with a subsequent interest in
the property may pay the beneficiary or his authorized agent the amount
necessary to cure the default.
This amount will include delinquent payments, and advances and the fees and
costs associated with filing the notice of default and other necessary
documents. When the default is cured, a Notice of Rescission will be prepared
so that it can be signed by the beneficiary. When the Notice of Rescission is
recorded it cancels the Notice of Default.
2. Notice of Trustee’s Sale
If after 90 days the borrower has not remitted the arrearages, the lender may
authorize and instruct the Trustee to record the Notice of Trustee Sale (NOS).
After 21 days of the recording of the NOS, a foreclosure sale can take place at
public auction. The property may be sold to a third party bidder or revert back
to the lender for a specified amount.
Bidders are required to bring cashier's checks or money orders to the sale in
an amount equal to or higher than the lenders opening bid. The auctioneer will
qualify each bidder and the successful bidder will have to tender full payment
at the sale.
The Notice of Trustee's Sale is recorded at the County Recorder's office in the
County where the property is located. It contains the date, time and place
where the auction will take place. This notice has to be published in an
adjudicated newspaper in the city where the property is located. The NOS is
also posted on the property as a requirement of law.
3. Disbursement of Funds
After the sale auction is completed and if the property sells to an outside
third party bidder, all funds owed to the lender/beneficiary will be prepared
for immediate payout. If the property reverts to the lender/beneficiary at the
sale, a Trustee's Deed will be issued and the lender will have ownership to the
property securing the debt.
We would be happy to educate you further on starting a California foreclosure.
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