FINDING THE BREAK IN YOUR CHAIN OF TITLE
FINDING THE BREAK IN YOUR CHAIN OF TITLE
You may ask yourself, what a break in the chain of title is.
In real estate, the chain of title is the ownership history of a particular property. When a property is sold, the title
is transferred by Assignment, Grant Deed or Quitclaim, and these transfers form the chain of title.
The Deed of Trust memorializes your position as the Trustor/Borrower.
Bouvier's Law Dictionary describes "bad title" as "...one which conveys no property to the purchaser of an estate." It's rare for property titles to fit this definition; however, sometimes the title on a property can have breaks in the chain of title (property transfers).
A break in the chain of title is usually the result of incorrectly prepared deeds, which makes them void, or people who never deeded out, or even heirs who never released their interests in property they received through an inheritance. Most of the time, errors are of a clerical nature, such as leaving off information or adding incorrect information. Depending on the situation, it's possible to easily repair the damage with an affidavit or rerecorded document correcting the error(s).
In real estate, the chain of title is the history of the property’s ownership. When a property is sold, the title is transferred, and these transfers form the chain. Researching the chain of title is among the tasks performed by a title company when a buyer signs a contract to purchase a property. The chain of title for any property is found in the relevant county recorder’s office, and there’s no reason you can’t conduct your own search to determine the chain of title. All the information is in the public record. Keep in mind that state laws governing the recording of real estate transfers differ, so the chain of title process in one state may differ somewhat from the chain of title process in another.
This can be a very complex issue due to the fact that a majority of homeowner’s mortgages were converted to Mortgage Backed Securities at which point it was allegedly transferred to a Securitization Trust in New York. (There will be more on Mortgage-Backed Securities later)
The information given here is only a very quick skeleton overview to help people who are already in litigation or about to go in to litigation for their home who don't have a lot of time to prepare for court. We will place a more informative outline latter.
In looking for your chain of title you will usually find the following documents:
• Grant Deeds
• Deed of Trust
• Assignment of Deed of Trust
• Quitclaim Deeds
• Substitution of Trustee
• Notice of Default
• Notice of Trustee's Sale,
• Trustee's Deed Upon Sale. (This one is only if your property was sold), and if your property has been sold again to a third party, there is usually a Grant Deed.
There are other documents known as tax liens, rescission, mechanic liens...etc. More on these latter.
In looking for your chain of title you will need to go to a County Recorder's Office located in your county unless you know someone at a title company who can provide you a copy. If not this could run up to $200.00.
The foundational documents that governs your position in your chain of title are the Grant Deed and Deed of Trust when you purchased your home. The Grant Deed is granted to you when you first purchase your home. The Deed of Trust is the Trust Agreement/Contract that you entered into.
In the Deed of Trust are the definitions of the contract and this is where you unknowingly transferred all your rights to the Lender. You also transferred to the Trustee the power of sale clause in the event that you default on the contract.
NOTICE HOW I DID NOT SAY, "DEFAULT ON THE LOAN".
We will get into the definition of Loan much later, because for right now you need to find the break in your chain title and any discrepancies in the wording, dates, signatures, notary signatures and stamps.
Most people were led to believe that they were entering into a homeowner purchase agreement, when in fact they entered into a trust agreement making them a tenant in their own home.
Remember that you, unknowingly transferred all your rights to a trustee with the power of sale clause.
The power of sale clause is a contract provision that allows the beneficiary initiate the foreclosure process of your property.
One big question that is always asked is: How can they sell our homes in violation of the Constitution"? "Isn't that a violation of our Due Process Rights"? The Constitution says that nobody can be deprived of Life, Liberty or property without Due Process.
Well, you must look at a 1978 California Supreme Court case where Susan Garfinkle vs Superior Court (Garfinkle v. Superior Court , 21 Cal.3d 268), raised this issue and you will see why the State does not get involved at that point.
Now, if you are in Default you will have a document called "NOTICE OF DEFAULT" recorded on your title and if you have already been in Default for more than 90 days, you will also have a "NOTICE OF TRUSTEE'S SALE" document recorded in your chain of title.
On the top right corner of the Deed of Trust is a registration number. For example: 20070001467. This number must be used in every document that is related to the foreclosure on your property.
In most cases, but not always the first documents to transfer title are Assignments of Deed of Trust. Sometimes called Corporate Deed of Trust or Corporation Deed of Trust, whereby the alleged Lender transfers title to your property to another entity.
In the body of the text of each of these documents, you will find the Deed of Trust registration number example above, and the date that it is relating to.
The next one will be the Substitution of Trustee. It too, should have the Deed of Trust registration number also.
Next will be a Notice of Default, and then a Notice of Trustee's Sale.
When the beneficiary, Servicer and Trustee begin the foreclosure process all the documents that are recorded on your chain title will reference your Deed of Trust instrument number and the date that it was recorded and this will help you make sure that you are referring to the correct documents, because if you have two mortgages on your property there will be two different sets of registration numbers. So you need to make sure you are following the right foreclosure documents.
All these documents are the ones you want to start your investigation for errors, omissions and forged signatures.
The Assignments, Substitution of Trustee, Grant Deeds and the Trustee's Deed Upon Sale are notarized.
You will need to look to see what state the documents are notarized. Then you need to see if their notary commission has expired.
If it has expired, you need to contact the Secretary of that State and begin your enquiry.
For our paid members we will have template letters and very specific instructions on how to build a case against any fraudulent notary stamped document.
The notary are required to follow the government codes and state statutes.
We at Dave-vs-Goliath.org can assist you in reviewing your documents and direct you in the proper direction to attain the proper documentation to help you fight in your wrongful foreclosure.