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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: The second is still in default! Posted by Jim V on January 31, 2002 at 3:19 PM In Reply to: Reinstating 1st loan in Default posted by Jim on January 31, 2002 at 2:49 PM : Given: 1st Note/T.D. has recorded Notice of Default. Investor buys note secured by a 2nd, seller financing, T.D. This note is paid current. The clock ticks until nvestor has to reinstate 1st to protect his investment. Once 1st is paid current, Trustor picks-up payments on the 1st and keeps both notes paid on time. : Question: Does the 2nd note holder have any remedy to recover his reinstatement costs? : Thanks, Jim If the second is required to forward funds to protect their investment, those funds are due from the trustor immediately. The second has the capability to foreclose until that amount is paid. Of course, you want to make sure the investor's right to do this is specified in the T.D. they bought. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Given: 1st Note/T.D. has recorded Notice of Default. Investor buys note secured by a 2nd, seller financing, T.D. This note is paid current. The clock ticks until nvestor has to reinstate 1st to protect his investment. Once 1st is paid current, Trustor picks-up payments on the 1st and keeps both notes paid on time. : : Question: Does the 2nd note holder have any remedy to recover his reinstatement costs? : : Thanks, Jim : If the second is required to forward funds to protect their investment, those funds are due from the trustor immediately. The second has the capability to foreclose until that amount is paid. Of course, you want to make sure the investor's right to do this is specified in the T.D. they bought. 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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