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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Senior lender can enforce its due-on-sale rights against a junior REO owner... Posted by David Starck on October 24, 2005 at 10:16 PM 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 : : : : 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? : ~~~~~~~~~~~~~~~~ : 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. ---------- Is there case law that I can read regarding this issue? Follow Ups: Garn-St. Germain Act... Ward-CA- 8:41 PM, 10/26/05 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : : : : 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? : : ~~~~~~~~~~~~~~~~ : : 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. : ---------- : Is there case law that I can read regarding this issue? 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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