Question

In order for the beneficiary of a second deed of trust to obligate the Trustee under a first deed of trust to advise him of a foreclosure proceeding under the first deed of trust, the beneficiary of the second deed of trust must record a:

1) notice of default
2) lis pendens
3) request for notice of default
4) request for reconveyance
5) affidavit of request

Answer 1

The beneficiary of a second deed of trust must record a request for notice of default to ensure they are informed of any foreclosure proceedings on a property. This legal requirement allows the second lienholder to protect their interest against the actions of the first deed of trust holder.

Step-by-step explanation:

In the context of real estate law, the beneficiary of a second deed of trust can secure their interest by recording a request for notice of default. This legal instrument compels the Trustee under the first deed of trust to notify the beneficiary of the second deed of any foreclosure proceedings initiated under the first deed. This request for notice of default must be formally recorded with the county recorder's office to be effective.

Recording such a request is essential because, in a foreclosure, the second deed of trust is subordinate to the first, meaning it can be wiped out if the first deed holder forecloses without the second deed holder's knowledge. With the request for notice of default in place, the second lienholder is ensured the opportunity to protect their interest, potentially by paying off the first deed of trust or bidding at the foreclosure sale.