The mortgage is not the bond


California is a community property state.

When california property title is conveyed from one party to another, a deed is the instrument that used for this purpose. The deed contains the names of the current owner (the grantor) and the new owner (the grantee), the legal description of the property, and is signed by the grantor.  Transfers of real property must be in writing and notarized. Deeds should be recorded in the county where the property is located. 

You will also need to decide how you are going to hold title when you are buying property. Co-buyers can take title as joint tenants with right of survivorship or tenants in common.  In California, a husband and wife may take title to property as husband and wife, as community property, since California is a community property state.

HUD-1 must be completed

One-Day Advance Inspection of the
Settlement Statement (§3500.10)
Upon request by the borrower, the HUD-1 or
HUD-1A must be completed and made available
for inspection during the business day immediately
preceding the day of settlement, setting forth those
items known at that time by the person conducting
the closing.

1099-A Abandonment of property

Does anyone have any hints for handling a 1099-A for rental property repossessed by the lender?I specifically need answers as to where each amount on the form goes when entering “dispositon” information. Box 5 is checked “yes” the borrower is personally liable for repayment of the debt.No 1099-C has been received yet.


IRS Dilemma

If you are not personally liable for the debt,
you do not have ordinary income from the cancellation of debt unless you retain the collateral
and either:
The lender offers a discount for the early
payment of the debt or
The lender agrees to a loan modification
that results in the reduction of the principal
balance of the debt.
See Discounts and loan modifications, later.
Also, upon the disposition of the property securing a nonrecourse debt, the amount realized includes the entire unpaid amount of the debt, not
just the FMV of the property. As a result, you
may realize a gain or loss if the outstanding
debt immediately before the disposition is more
or less than your adjusted basis in the property.
For more details on figuring your gain or loss,
see chapter 2 of this publication or see Publication 544.


I don’t disagree and yet, too many people took everything he said at face value and started using his argument, without any understanding of how courts work and how detrimental to their cases some of those defenses were. I know for a fact that many pro se got thrown out of the court by judges who were irritated beyond belief at the suggestion that they ought to be given the infamous “free house”. As a result, many who could have saved the house and gotten a mod lost everything. As a paralegal, you know how courts are, right? Patience isn’t their strong suit…

Don’t get me wrong: people still have a duty to use judgment and critical sense but I think he knows by now who reads his site. Granted, Garfield does serve a purpose. But presenting the complete “security audit” which doesn’t come cheap either as the panacea for foreclosure, to subsequently declare that getting one plays in the hands of the banks (and it does) is wrong. And there is that little matter of coming up with all those theories and making people believe that they work while admitting to John Wright that they don’t and that even Max Gardner doesn’t use them.

The last point i don’t care for much is the idea that accepting a mod is almost stupid since the title is clouded.  That “don’t settle for anything but a free house” doesn’t sit right with me: it’s hurt a lot of people.