InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Making Laws For The Sake Of Making Them Posted by Sean, N.C. on August 08, 2004 at 9:57 AM In Reply to: Re: Senior lender can enforce its due-on-sale rights against a junior REO owner... posted by Kristine-CA on August 08, 2004 at 9:07 AM : Why is there no law to exempt foreclosure transfers from the DOS? Kristine There are millions of trust deeds recorded out there that say nothing about what happens when a 2nd forecloses, and how this affects Due-On-Sale. We've only had about 20 years of non-assumable mortgages, and that's just catnap, in comparison to the evolution of law. Considering that the 1st position lender did a creditworthiness exam before issuing the note, it makes logical sense that they would be interested in who the new entity is, that is responsible for paying them back. I'm not surprised that investors want to tiptoe around the DOS clause. But I can understand the lender's point of view. We just need to focus on the real world. If the 2nd foreclosed on a deadbeat, and the new owner offers a reinstatement on the 1st, the 1st usually breathes a sigh of relief, and accepts reinstatement. Odds are, whoever ownes the collateral now, they'll be a better credit risk. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : Why is there no law to exempt foreclosure transfers from the DOS? Kristine : There are millions of trust deeds recorded out there that say nothing about what happens when a 2nd forecloses, and how this affects Due-On-Sale. We've only had about 20 years of non-assumable mortgages, and that's just catnap, in comparison to the evolution of law. : Considering that the 1st position lender did a creditworthiness exam before issuing the note, it makes logical sense that they would be interested in who the new entity is, that is responsible for paying them back. : I'm not surprised that investors want to tiptoe around the DOS clause. But I can understand the lender's point of view. : We just need to focus on the real world. If the 2nd foreclosed on a deadbeat, and the new owner offers a reinstatement on the 1st, the 1st usually breathes a sigh of relief, and accepts reinstatement. Odds are, whoever ownes the collateral now, they'll be a better credit risk. 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

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-2004, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455