Deed of Trust with No Note

**cdismuke** · 10-09-2007, 02:41 PM

I will try to keep this simple.

Borrower owed $60,000 to an individual. The individual, in order to protect himself asked borrower to sign a deed of trust.

Borrower signed a trust deed in June of 2006 for $60,000 debt in 3rd position on title.
There was no note or terms of repayment discussed or signed for except that borrower agreed on the deed, to pay the debt in full by 12/2006.

Borrower could not repay the debt at all.

Debtor is now attempting to draw up a note with a 16% interest rate retroactive to the original date of the deed.

Question:

-Can debtor make a note after the fact and enforce it if one was not presented at original signing?

-Can debtor foreclose on the property claiming that "payments" were not made according to the note when no note was present or signed?

-Can the debtor foreclose at all with no note or terms?

**Mr. Knowitall** · 10-10-2007, 09:03 AM

I assume you mean "creditor", not "debtor". The creditor lends money, the debtor borrows money.

The creditor can't unilaterally impose a note after-the-fact.

No payment has been made, and it is not disputed that payments were due, so it is quite possible that the lender can foreclose.

Laws are different in each state.

**cdismuke** · 10-10-2007, 10:27 AM

Thanks Knowitall.
I am in California. Where do I start to find more information on this scenario? I know a Real Estate attorney can help but I want to collect as much info on the legalities as possible before seeing an attorney.