I had another victory in a Quiet Title action for a home owner on California so it seems like a good time to discuss this topic again.
First, the foundation of a Quiet Title action is the securitization audit. It is an essential element of a successful Quiet Title action. Many/most of the companies offer what I refer to as “superficial” audits that really have little substantive value. An analogy is the DNA testing that is offered to the public. Most are superficial scans that are merely identifying your heritage and then making assumptions about your health based upon risk factors known to people of that region. They are not specific to you as an individual.
A securitization audit is NOT a forensic audit. Totally different animal. I describe them as follows: a securitization audit is to the mortgage or deed of trust as a forensic audit is to the loan or note. In Quiet Title actions, it is helpful, but not imperative, to have a forensic audit as well. The reason will be outlined below.
Quiet Title, if successful, strips away the mortgage or deed of trust. It removes the “lien” from the property. I describe the scenario as receiving a property “free, but not clear”. This is a significant distinction. Pirates in this space advertise that you can get a property “free and clear”. Not so!! You can remove the secured interest, but the underlying debt is still owed (although it too can be removed)!!
I will describe strategies in future blogs because I receive a lot of questions from real estate professionals about this. I the past six months, a judge in Florida and another in New Jersey have asked me about this…it is new for the judicial system too!!
It is important to note that all audits are not created equal. As I mentioned, they are the foundation of a successful challenge. Ask for referrals before deciding which company to utilize.
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