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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Different purposes of an ROR vs a DOS... Posted by Ward-CA- on August 09, 2004 at 6:48 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 : 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 ~~~~~~~~~~~~ Kristine, The Right of Reinstatement (ROR) of delinquent payments is different from the Due-On-Sale (DOS) clause. The ROR's purpose is to give a junior lienor or interest holder the opportunity to cure a senior's foreclosure and institute their own instead. The DOS purpose is to prevent almost everyone from taking over someone else's loan and thereby effectively sidestepping the lender's requirement of a qualified borrower paying on their loan. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : 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 : ~~~~~~~~~~~~ : Kristine, : The Right of Reinstatement (ROR) of delinquent payments is different from the Due-On-Sale (DOS) clause. : The ROR's purpose is to give a junior lienor or interest holder the opportunity to cure a senior's foreclosure and institute their own instead. : The DOS purpose is to prevent almost everyone from taking over someone else's loan and thereby effectively sidestepping the lender's requirement of a qualified borrower paying on their loan. : Hope this helps. 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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