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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Senior lender can enforce its due-on-sale rights... Posted by TB - CA on August 07, 2004 at 9:01 AM In Reply to: Senior lender can enforce its due-on-sale rights... posted by Ward-CA- on August 06, 2004 at 9:36 PM : : Let's say a 2nd TD is foreclosing and at the trustee sale, I become the winning bidder. If the 1st TD is still current, can the lender call the loan (invoking the due on sale clause) on the beneificary of the 2nd TD by claiming the property has sold?.....or....can the 2nd TD beneficiary simply keep the 1st current until the property is resold? : ~~~~~~~~~~~~~~~~~ : TB, : After the foreclosure auction of the 2nd trust deed, the 2nd is extinguished and all junior liens and interests are wiped off the title of the property. So the only liens remaining afterwards are the 1st and the property taxes. : The beneficiary of the 1st can exercise the due-on-sale clause in her note and 1st trust deed against the new owner-by-foreclosure. : (At this point in time there’s no beneficiary of the 2nd since it was already foreclosed upon.) : Hope this helps. Thanks for the answer...I do not think I did a good job in my original question. Let me try to articulate my question better this time. If the first TD was current when I as the junior lien holder foreclosed and aquired the property, can the 1st TD call the loan due even if the junior continues to keep the first current? After all, as the junior isnt protecting my interest via the foreclosure process the only alternative I have in protecting my interest? The first's interest is still intact and current - but you are telling me that the first can immeidately call the loan due -even if I as the former junior keep the first current? If this is the case, does that mean that anytime a 2nd td holder forecloses on a borrower, that 2nd td holder must all pay off the entire 1st immediately as well? Follow Ups: Senior lender can enforce its due-on-sale rights against a junior REO owner... Ward-CA- 5:39 PM, 08/07/04 (5) Re: Senior lender can enforce its due-on-sale rights against a junior REO owner... David Starck 10:16 PM, 10/24/05 (1) Garn-St. Germain Act... Ward-CA- 8:41 PM, 10/26/05 (0) Re: Senior lender can enforce its due-on-sale rights against a junior REO owner... Kristine-CA 9:07 AM, 08/08/04 (2) Different purposes of an ROR vs a DOS... Ward-CA- 6:48 AM, 08/09/04 (0) Making Laws For The Sake Of Making Them Sean, N.C. 9:57 AM, 08/08/04 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : Let's say a 2nd TD is foreclosing and at the trustee sale, I become the winning bidder. If the 1st TD is still current, can the lender call the loan (invoking the due on sale clause) on the beneificary of the 2nd TD by claiming the property has sold?.....or....can the 2nd TD beneficiary simply keep the 1st current until the property is resold? : : ~~~~~~~~~~~~~~~~~ : : TB, : : After the foreclosure auction of the 2nd trust deed, the 2nd is extinguished and all junior liens and interests are wiped off the title of the property. So the only liens remaining afterwards are the 1st and the property taxes. : : The beneficiary of the 1st can exercise the due-on-sale clause in her note and 1st trust deed against the new owner-by-foreclosure. : : (At this point in time there’s no beneficiary of the 2nd since it was already foreclosed upon.) : : Hope this helps. : : Thanks for the answer...I do not think I did a good job in my original question. Let me try to articulate my question better this time. If the first TD was current when I as the junior lien holder foreclosed and aquired the property, can the 1st TD call the loan due even if the junior continues to keep the first current? After all, as the junior isnt protecting my interest via the foreclosure process the only alternative I have in protecting my interest? The first's interest is still intact and current - but you are telling me that the first can immeidately call the loan due -even if I as the former junior keep the first current? If this is the case, does that mean that anytime a 2nd td holder forecloses on a borrower, that 2nd td holder must all pay off the entire 1st immediately as well? 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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