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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Answers 1, 2, & 3 Posted by George on January 01, 2002 at 3:28 PM In Reply to: Re: Answers posted by Ward-CA- on January 01, 2002 at 2:27 PM : : : 1. I want to buy a pre-foreclosure ?subject to? the existing financing in default. : : 2. Want to assume the loan and cure the default/reinstate the loan but don?t want to notify the lender to avoid the acceleration clause. : : 3. Then I plan on getting an HELOC 2nd to pay seller for some equity and rehab costs. : : : : Questions: : : 1. Do lenders, either for a 2nd TD or HELOC, have any issues with having/seeing/learning of one individual showing on title, me, and another person on the existing first mortgage that was in default? Going behind a 1st TD in someone else's name? : : 2. Can you get the HELOC if the first is currently in default? Will they payoff the default amount as a condition to funding? : : 3. What about lender seeing the first on title but not on my credit report? : : Much appreciated? Thank you! : =?=?=?=?=?=?=?=?=?=?= : George, : #2 of facts, above. When you assume a loan you are actively engaged with the lender and entering into a written assumption agreement with them wherein you agree to be personally liable for the payment of the balance of their loan. So it sounds like you don?t want to assume the loan, rather you want to take title to the property subject to the loan. : Questions: : #1. Since there?s nothing recorded dealing with the assumption of an existing trust deed, a soon-to-be subordinate lender would not have a clue whether you entered into an actual assumption or not with the senior lender. : #2. No lender will make a junior loan on a property while an existing senior loan against the property is in default! I?d doubt you could convince them to cure a default. : #3. This is why I usually put the property?s title in a existing title holding trust that is titled in Seller?s surname. This new year I?m forming an LLC to act as my trustee. ????????????????????????????????????????? Re: A1: Even if I bring the first that's in default current, Will the lender ask for a mortgage rating on that first? That would definitely impact one's ability to get the second. Re: A2: What if, rather than a 2nd, I refi the first using my credit/income for qualifying? Will they do the refi when the existing first is in default if i'm on title and have clean credit/income and the equity is there? Seasoning issues? Re: A3: Is this scenario similar to the question Posted by jean on December 02, 2001 at 12:23 AM? What then? In a Title Holding Trust, are the Trustor and Beneficiary the same? Do you make a contract before doing all of this that explicitly states that the trustor/seller will 'step down' and transfer the trustorship over to you, the trustee/beneficiary within a certain time frame? Definitely a clever 'sidestep!' Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : : : 1. I want to buy a pre-foreclosure ?subject to? the existing financing in default. : : : 2. Want to assume the loan and cure the default/reinstate the loan but don?t want to notify the lender to avoid the acceleration clause. : : : 3. Then I plan on getting an HELOC 2nd to pay seller for some equity and rehab costs. : : : : : : Questions: : : : 1. Do lenders, either for a 2nd TD or HELOC, have any issues with having/seeing/learning of one individual showing on title, me, and another person on the existing first mortgage that was in default? Going behind a 1st TD in someone else's name? : : : 2. Can you get the HELOC if the first is currently in default? Will they payoff the default amount as a condition to funding? : : : 3. What about lender seeing the first on title but not on my credit report? : : : Much appreciated? Thank you! : : =?=?=?=?=?=?=?=?=?=?= : : George, : : #2 of facts, above. When you assume a loan you are actively engaged with the lender and entering into a written assumption agreement with them wherein you agree to be personally liable for the payment of the balance of their loan. So it sounds like you don?t want to assume the loan, rather you want to take title to the property subject to the loan. : : Questions: : : #1. Since there?s nothing recorded dealing with the assumption of an existing trust deed, a soon-to-be subordinate lender would not have a clue whether you entered into an actual assumption or not with the senior lender. : : #2. No lender will make a junior loan on a property while an existing senior loan against the property is in default! I?d doubt you could convince them to cure a default. : : #3. This is why I usually put the property?s title in a existing title holding trust that is titled in Seller?s surname. This new year I?m forming an LLC to act as my trustee. : ????????????????????????????????????????? : : Re: A1: Even if I bring the first that's in default current, Will the lender ask for a mortgage rating on that first? That would definitely impact one's ability to get the second. : Re: A2: What if, rather than a 2nd, I refi the first using my credit/income for qualifying? Will they do the refi when the existing first is in default if i'm on title and have clean credit/income and the equity is there? Seasoning issues? : Re: A3: Is this scenario similar to the question Posted by jean on December 02, 2001 at 12:23 AM? What then? In a Title Holding Trust, are the Trustor and Beneficiary the same? Do you make a contract before doing all of this that explicitly states that the trustor/seller will 'step down' and transfer the trustorship over to you, the trustee/beneficiary within a certain time frame? Definitely a clever 'sidestep!' Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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