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 Forms FAQ Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Reinstatement of senior lien by junior lien holder Posted by Ward-CA- on August 15, 2002 at 3:38 PM In Reply to: Reinstatement of senior lien by junior lien holder posted by Gary on August 15, 2002 at 8:31 AM : Ward: : If the junior lien holder reinstates the senior lien holder's loan to protect the jr. lien holder's interest, can the jr. lien holder add the reinstatement amount he paid on to his own outstanding amount? : For example, the 1st is in default and requires $20k reinstatement. The 2nd is in default to the tune of $10k. The 2nd pays the 1st the $20k to protects it's jr. position. Can the 2nd now go to the property owner and legally say that the owner now owes the 2nd $30k (i.e., $10k plus the $20k the 2nd had to fork out)? : Thanks, : Gary =•=•=•=•=•=•=•=•=•=•= Gary, Yes, under the Theory of Advances the reinstatement monies paid to cure a delinquent senior lien by a junior lienor can be added to the balance of the reinstating junior’s loan. The junior lienor can also insist, under threat of foreclosure, on the immediate reimbursement of the monies forwarded to the senior lienor. And there’s nothing to stop the junior from adding the $10,000 delinquency he’s owed to the total reimbursement amount. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward: : : If the junior lien holder reinstates the senior lien holder's loan to protect the jr. lien holder's interest, can the jr. lien holder add the reinstatement amount he paid on to his own outstanding amount? : : For example, the 1st is in default and requires $20k reinstatement. The 2nd is in default to the tune of $10k. The 2nd pays the 1st the $20k to protects it's jr. position. Can the 2nd now go to the property owner and legally say that the owner now owes the 2nd $30k (i.e., $10k plus the $20k the 2nd had to fork out)? : : Thanks, : : Gary : =•=•=•=•=•=•=•=•=•=•= : Gary, : Yes, under the Theory of Advances the reinstatement monies paid to cure a delinquent senior lien by a junior lienor can be added to the balance of the reinstating junior’s loan. The junior lienor can also insist, under threat of foreclosure, on the immediate reimbursement of the monies forwarded to the senior lienor. : And there’s nothing to stop the junior from adding the $10,000 delinquency he’s owed to the total reimbursement amount. 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