[Horacio Gutierrez]

Horacio Gutierrez

Hello,

When recording an option do you record the deed of trust like a junior lien or do you record both option and mortgage. I don’t want the bank who has a first deed of trust recorded to find out about my option thru my junior lien. What should I record where the bank can’t use the due on sale clause if it finds out I have junior lien but I still can foreclosure on the property if the seller decides not to sell to me anymore?
Thanks H.

[Mike Weiss]

Mike Weiss

Horacio,

If there is no sale, only an option or trust deed, there can’t be a breakage of the due on sale clause.

Mike

[Horacio Gutierrez]

Horacio Gutierrez

Mike,

Im assuming the option is like a note which doesn’t get recorded but the Deed of trust does for the note or option, correct?

Thanks,
H