InnoVest Resource Management's Foreclosure Forum

Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Foreclosure Codes 50 State Foreclosure Basics Foreclosure Glossary 60+ Yrs Interest Rates News & Trends FAQ Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Close is the name of the game Posted by Ward-CA- on May 26, 2002 at 12:50 AM In Reply to: Re: Have to figure it out for yourself. posted by David on May 25, 2002 at 9:57 PM : Ward, : What if the first is a sub-prime loan, high interest, interest only payment with no or very little amortization? Your assumptions about amounts owed could be way off. : Also, how do you know the exact arrearages to bring the senior loans current after you are the successful bidder at the trustee’s sale? And where do you send the money? I’m assuming the x-homeowner is long gone and/or uncooperative. Do you contact the senior lenders at that time since you now have a legal interest in the property, if so, can they exercise DOS? : Interesting subject. : Thanks, David =•=•=•=•=•=•=•=•=•=•= David, I’m sure by now that you’ve discovered in life that a lot of things have to be assumed, based on your past experience. That’s what’s in play here. Of course we don’t have actual knowledge exactly what the loan terms are. But if we play the averages we come damn close most of the time. And close is the name of the game in many enjoyable activities besides figuring out foreclosures. For example, close works when dancing, playing darts, horseshoe throwing and getting seats at baseball games, etc. The odds that a first mortgage is going to be sub-prime and interest only is about as probable as me being out of the office on Memorial Day. So I’ll stick to my more pedestrian assumptions. My 20 years of experience are on my side much more than not. Once I own the foreclosure I don’t have to guess any more about the reinstatement amount. I just call the senior lienor and tell them I’m the new owner by way of a foreclosure auction on the junior and I want to exercise my right of reinstatement and bring their delinquent loan current. If they doubt my ownership claim I just fax them the auctioneer’s receipt or my trustee’s deed. I send the reinstatement monies to the address the senior lender gives me. Interestingly enough, almost all large lenders are so compartmentalized that the loans in default department doesn’t know or care about the due on sale issue since it isn’t their job to enforce it. That’s the mission of the compliance department. When the compliance department does get wind of the ownership change it’s too late. Either I’ve made so many payments with their actual knowledge that I’m the new owner that they are estopped from taking action or I have the deal in a resale escrow and am in the process of paying them off. Hope this helps. Follow Ups: Thanks! (nt) David 8:24 AM, 05/27/02 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : What if the first is a sub-prime loan, high interest, interest only payment with no or very little amortization? Your assumptions about amounts owed could be way off. : : Also, how do you know the exact arrearages to bring the senior loans current after you are the successful bidder at the trustee’s sale? And where do you send the money? I’m assuming the x-homeowner is long gone and/or uncooperative. Do you contact the senior lenders at that time since you now have a legal interest in the property, if so, can they exercise DOS? : : Interesting subject. : : Thanks, David : =•=•=•=•=•=•=•=•=•=•= : David, : I’m sure by now that you’ve discovered in life that a lot of things have to be assumed, based on your past experience. That’s what’s in play here. Of course we don’t have actual knowledge exactly what the loan terms are. But if we play the averages we come damn close most of the time. And close is the name of the game in many enjoyable activities besides figuring out foreclosures. For example, close works when dancing, playing darts, horseshoe throwing and getting seats at baseball games, etc. : The odds that a first mortgage is going to be sub-prime and interest only is about as probable as me being out of the office on Memorial Day. So I’ll stick to my more pedestrian assumptions. My 20 years of experience are on my side much more than not. : Once I own the foreclosure I don’t have to guess any more about the reinstatement amount. I just call the senior lienor and tell them I’m the new owner by way of a foreclosure auction on the junior and I want to exercise my right of reinstatement and bring their delinquent loan current. If they doubt my ownership claim I just fax them the auctioneer’s receipt or my trustee’s deed. : I send the reinstatement monies to the address the senior lender gives me. Interestingly enough, almost all large lenders are so compartmentalized that the loans in default department doesn’t know or care about the due on sale issue since it isn’t their job to enforce it. That’s the mission of the compliance department. : When the compliance department does get wind of the ownership change it’s too late. Either I’ve made so many payments with their actual knowledge that I’m the new owner that they are estopped from taking action or I have the deal in a resale escrow and am in the process of paying them off. : 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

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.

Copyright © 1997-2002, InnoVest Resource Management

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