RECOURSE

With Trust Deed Investing your investment is secured by Real Property. If the borrower defaults your RECOURSE is to modify the loan terms or take over the asset. You can sell or “rent out” the asset.

If a stock stops paying you, you have no recourse. If a Trust Deed Borrower stops paying you, however, you have many options of recourse, including borrowing money against the Trust Deed, filing foreclosure or liquidating the investment by selling the Note and Deed of Trust. Filing a Notice of Default on a delinquent borrower is like a severe bee sting, usually alerting the tardy borrower’s attitude. If a stock stops going up, you’re not in control; you’re not in the driver’s seat. In Trust Deed Investing, however, you are in the driver’s seat. 

A stock owner has no control over his investment whatsoever in case of default; he cannot foreclose, nor would he want to. He would certainly not want to own, nor wish to pay for the disposal of bankrupt factories, mills and other commercial/industrial property in far away places. A Trust Deed Owner, on the other hand, is always in the driver seat and exercises great control over his investment. In case of a default, foreclosure is just one of several options he can choose.

NON-JUDICIAL FORECLOSURE PROCESS.pdf

Real Estate Broker - CA Dept. of Real Estate - License #00658654