Q: Trustor of Deed of Trust has fraudulently deposited check noted “Last Note Payment” when they are delinquent 20 payments
I am the PR for my step dad’s long running Estate. The Estate holds a 20 year Note with Deed of Trust for small apartment and retail commercial property in CA. The previous PR (step dad’s older brother) allowed trustors to accumulate 20 delinquent payments over 19 years with only telephone conversations between them. I recently discovered the Trustor wrote a check, endorsed it and made in bank deposit without my knowledge or approval. After responding to my initial PR introduction letter 2 years ago, the trustors have ignored letters attempting to secure payments. They have not acknowledged (or denied) the missing payments. They made regular payments up until the last payment was due on 01JAN2022. That check was noted Last Note Payment but was not deposited. A second check with the same note was received a few months later, but was also not deposited. I was about to start formal foreclosure procedures when this Last Note Payment scheme was discovered only a month ago.
A:
In California, if the Trustor of a Deed of Trust has fraudulently deposited a check noted "Last Note Payment" when they are delinquent on 20 payments, this may constitute a violation of the terms of the Deed of Trust and the Trustor's obligations under California law.
As the Personal Representative of your stepfather's Estate, you have a duty to protect the interests of the Estate and ensure that the Trustor fulfills their obligations under the Deed of Trust. It is important that you take appropriate legal action to address the Trustor's fraudulent behavior and secure the payments that are owed to the Estate.
In California, the foreclosure process for a Deed of Trust can be complex and may require the assistance of an experienced attorney. However, given the circumstances of this case, it may be appropriate to consider other legal remedies, such as filing a lawsuit for breach of contract and/or fraud against the Trustor.
It is important that you act promptly to protect the interests of the Estate and ensure that the Trustor is held accountable for their actions. You may wish to consult with an attorney who is experienced in real estate and contract law to determine the best course of action in this situation.
In conclusion, if the Trustor of a Deed of Trust in California has fraudulently deposited a check noted "Last Note Payment" when they are delinquent on 20 payments, this may constitute a violation of the Deed of Trust and California law. As the Personal Representative of the Estate, it is important to take appropriate legal action to protect the interests of the Estate and secure the payments that are owed. An experienced attorney can help you navigate the legal process and determine the best course of action.
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