Professional Documents
Culture Documents
L. H. RoSEBERRY
lice Prcsidcht
E..rnlt Tnrsl d sdrtrrr Rn,a
Lbt Atrlt.|ct
70 The Bacl,taBIue Book of Cdifornia
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The Real,t! BLue Book ol Cd,Iilomi.a 75
BEST PBOTECTION
The only way to protect a building loan is to make a consrRnmated
passthe money to the credit of the borrower,and then hold it
an agreementto disburseit on the building wlen under con-
A mortgage recorded is ahead of a subsequently declared home-
, Under the laws of this state a wife may declare a homestead
any properly of the husband. Somptimesthe wifF, when she feels
her husbandis engagedin a precariousbusiness, u_illquielly place
homesteadon their property. That immediately attaches on a prop-
, whether i1 is a smcll houseand lot or a million dollar properl},
loDgas it is property uspd lor a home. That is prior to any subse-
mortgages, but it is not prior to mortgages then existing on
property.
TRUST DEED EXPLAINED
The oldina4r trust deed, with which you are familial, which v/e
interchangably with mortgages in general, is in the nature of t}le
metransaction,but it is handledin a different way. The legal title
the pmp€rty given as s€clTity for the debt is conveyedto a trustee,
tlle trustee does not take possession. The title r€sts quieily in
fuusteeuntil there is a default. It may be failure to pay interest,
to maintainadequateinsurance,to maintain pdolity of liens or
up premisesor any other of the obligationsof the maker that
a default. In such casethe beneficiaryof the rote has a right
denundthat the truste€ take action. Thet is doneby the trustee
ing notice of default and intended sale in the mauer provided by
. A{ter 90 days the Lrustcemay sell that properly in the manner
by the trusl deed,which is usually al pdvate sale. The
is conveyedby the tlustees to the successful bidd€r at the
s sale.'
In a modgage foreclosule, if the real property does not sel1 for
to pay for the amountof the judgment you get what is caued
y judgment" and may ihpn levy upon any other propedy
mortgagormay have until the judgment is satisfied. Thai isn't
with a hust deed. If the property doesnot sell for enoughto
the securednote, yolt must go into court and sue for the
. As far as full settl€ment of t}le borowe/s liabilities are
the mortgageis lhe bpst, allhough it takesmore time. On
wholethe mortgageis the safest security to use. It is the sole
usedby lhe Security Trust and SavingqBank lo protect its real
loans.
Sometrusteesrequire the acceptance, on their part of all trust
in which they are desi$lated trustee. The Title Insurance and
Company requires it. The Security Tmst and Savings Bank
nol know how many trusl depdsare outslandingin which il is
prjor
as Trustee,for that bank doesnot tequire acceptance
ult.
When taking a deed I,o feal properly there is quile a drff"i"ence
taking it 'subjecl,' lo lhe morlgage and taking il and
ing" the mortgage on that propedy. If you lake property
iect to a mortgage,"you are not personallyresponsiblefor the
t of the debt; but the property so taken Inay be sold to satisfy
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