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Re: Senior lender can enforce its due-on-sale rights against a junior REO owner...In Reply to: Senior lender can enforce its due-on-sale rights against a junior REO owner... posted by Ward-CA- on August 07, 2004 at 5:39 PM
: : : ~~~~~~~~~~~~~~~~ : TB, : Yes, it has been settled that the 1st can call their loan due if there's a non-consented transfer in the ownership of the property--even if the new owner is a previous junior lienor who got the title to the property via his foreclosure auction as an REO. : When a junior lienor takes title to property as an REO he's at the mercy of the 1st if the 1st insists on being paid off. Ward: I understand your statement that the first can call their loan due after a transfer due to foreclosure. But it seems incongruent with the fact that firsts have to accept payments from the junior benies upon default. Why is there no law to exempt foreclosure transfers from the DOS? Kristine Follow Ups:
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