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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: How to waive a Due on Sale clause Posted by Ward-CA- on August 07, 2001 at 2:44 PM In Reply to: How to waive a Due on Sale clause posted by Troy on August 07, 2001 at 1:46 PM : Ward, in your article this month you state, : "...you just might want to try to create a situation wherein the lender effectively waived its right to call their senior loan because they delayed too long calling the loan after being put on actual notice that a sale (the trustee's sale) had taken place and you're the new owner." : What type of situation could you create to cause a lender to waive their right to call the loan due? And, how do you document such a thing? =•=•=•=•=•=•=•=•=•=•=•= Troy, at law there’s a form of acceptance called “acquiescence”—passive assent without protest. To apply it to a due-on-sale situation, you would first have to put a lender on actual notice that you’re the new owner of a property that’s subject to their loan. I accomplish it by writing the lender a letter, telling them I’m the new owner-by-foreclosure because of a junior lien that went to foreclosure sale. Furthermore, they will find enclosed a cashier’s check in the amount necessary to reinstate their loan, including all delinquent payments, penalties, and other fees or charges caused by their foreclosure. Now, if the lender delays too long (about 3 months) in taking action regarding their right to call their loan due to the change in ownership (occasioned by the foreclosure sale of the junior lienor) then legally they’re said to have irretrievably accepted the situation due to acquiescence. Hope this helps. Follow Ups: Quit Claim Deed (Re: How to waive a Due on Sale clause bryan 4:52 PM, 08/10/01 (0) Re: How to waive a Due on Sale clause Troy 4:25 PM, 08/07/01 (1) Re: How to waive a Due on Sale clause Ward-CA- 8:43 AM, 08/08/01 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, in your article this month you state, : : "...you just might want to try to create a situation wherein the lender effectively waived its right to call their senior loan because they delayed too long calling the loan after being put on actual notice that a sale (the trustee's sale) had taken place and you're the new owner." : : What type of situation could you create to cause a lender to waive their right to call the loan due? And, how do you document such a thing? : =•=•=•=•=•=•=•=•=•=•=•= : Troy, at law there’s a form of acceptance called “acquiescence”—passive assent without protest. To apply it to a due-on-sale situation, you would first have to put a lender on actual notice that you’re the new owner of a property that’s subject to their loan. : I accomplish it by writing the lender a letter, telling them I’m the new owner-by-foreclosure because of a junior lien that went to foreclosure sale. Furthermore, they will find enclosed a cashier’s check in the amount necessary to reinstate their loan, including all delinquent payments, penalties, and other fees or charges caused by their foreclosure. : Now, if the lender delays too long (about 3 months) in taking action regarding their right to call their loan due to the change in ownership (occasioned by the foreclosure sale of the junior lienor) then legally they’re said to have irretrievably accepted the situation due to acquiescence. : 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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