How to Record a Trustee's Deed After Bankruptcy in California
- 1). Seek relief from the bankruptcy automatic stay. This necessitates the filing of a motion in federal bankruptcy court in the bankruptcy case of the owner of the real property that is pending in California. The motion must allege that the property has no equity, colloquially known as being "underwater."
- 2). Schedule and conduct the foreclosure sale of the real property after successfully obtaining relief from the bankruptcy automatic stay. In California, foreclosure is a nonjudicial process, allowing for a much quicker process. Issue the trustee's deed with the purchaser's name as the legal owner of the property.
- 3). Take several copies of the trustee's deed to the recorder's office in the California county where the real property is located. For example, if the property is in San Francisco, take the copies to the San Francisco Assessor-Recorder. The clerk will record the copies of the trustee's deed for a small fee and return the stamped and signed deeds by mail.
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