deed of trust with assignment of rents?

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we loaned a woman 20000 last year with it secured on a house rented out to clients for a nonprofit organization.(good cause) She defaulted in nov on the note and last month quit paying the agreed interest. our understanding is she now has not been paying the mortgage payments (although collecting rent from clients) and is coming up on her third late. If the bank files a notice of default does our deed of trust still get paid?What if we file a notice of default before the bank? Can we do this without a foreclosure service or attorney? What exactly is our rights with this particular form?

  1. Reply
    May 18, 2011 at 10:44 am

    Since there isn’t enough information on specifics I’m going to guess here but it sounds like you are a junior lien holder to the 1st note and mortgage that the bank holds. If a foreclosure occurs the bank gets paid first, then whatever is left goes to pay you and whatever is left after that goes to the person foreclosed on. It does not matter who institutes the foreclosure
    Buena Suerte

  2. Reply
    Jill J
    May 18, 2011 at 10:52 am

    I believe that it the bank forecloses first they will only try to get enough to cover the loan to them leaving you in the cold. If you foreclose you can at least try to get enough for the house to cover what is owed to you. You will have more control. I’ve never had to foreclose on anyone yet. I am sure that there are procedures like filing for it. You may not want to pay an attorney but it will be easier.

  3. Reply
    May 18, 2011 at 11:13 am

    Hey this is to involded for you to be getting advice here. Spend your hundred bucks and go talk to a lawyer. Phone them first for an appointment and find out what paperwork they will require. Most important do it NOW! Time means alot if the bacnk may forclose…I do know that if you are entitled to monie from this women it will most likely have to go to court….Lets

  4. Reply
    May 18, 2011 at 12:12 pm

    You need to most definately consult a lawyer, and can do so initially free of charge if that’s a concern. You have a number of potential incidents, and theres a great depth to this that’s going to involve more info than can be applied here, a lawyer will know what specifics must be covered per your agreement and terms of, and suggest the best coarse of action, but trust you should find one whom specializes in related field A.S.A.P., the longer you wait and debate the worse any scenario can become, and if the bank takes action first, they of coarse are always going to take presedence.

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