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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: If I buy 2nd at sale, can I reinstate first? Posted by Rick, the Probate Guy on June 26, 2009 at 12:45 AM In Reply to: If I buy 2nd at sale, can I reinstate first? posted by Timmy in MN on June 26, 2009 at 11:00 AM Lender should let you reinstate their first. However, there's no law which says they're prevented from calling their due-on-sale clause later. It's a pretty small risk, though. On the other hand, it has happened to me once (on my prior residence) and several times to my buddy Mike Cantu. Also, at some point, when interest rates increase above the rate of the current rate of the existing loan, lenders or their servicers may go fishing for breachers, meaning property owners who have purchased properties subject to their loans. Maybe that's a long shot and nothing to worry about, but it's always a possibility. How to prepare for this possibility in advance: 1. If the lender sends you the awful letter which starts: "It has come to our attention..." don't panic 2. Be prepared to refi or sell 3. They may be happy to refi their loan for new origination fees at attractive, market rates. Lastly, another argument why this may NEVER happen is that there's no benefit for a loan servicer to look for a reason to call a loan due, unless their bene client instructs them to do so. After all, they're in the game for the servicing fees. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Lender should let you reinstate their first. : However, there's no law which says they're prevented from calling their due-on-sale clause later. It's a pretty small risk, though. : On the other hand, it has happened to me once (on my prior residence) and several times to my buddy Mike Cantu. Also, at some point, when interest rates increase above the rate of the current rate of the existing loan, lenders or their servicers may go fishing for breachers, meaning property owners who have purchased properties subject to their loans. Maybe that's a long shot and nothing to worry about, but it's always a possibility. : How to prepare for this possibility in advance: : 1. If the lender sends you the awful letter which starts: "It has come to our attention..." don't panic : 2. Be prepared to refi or sell : 3. They may be happy to refi their loan for new origination fees at attractive, market rates. : Lastly, another argument why this may NEVER happen is that there's no benefit for a loan servicer to look for a reason to call a loan due, unless their bene client instructs them to do so. After all, they're in the game for the servicing fees. [ 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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