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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: 2 loans from same private lender... Posted by Kristine-CA on January 13, 2010 at 12:39 AM In Reply to: Re: 2 loans from same private lender... posted by Tom on January 13, 2010 at 10:04 AM Tom: what instrument was used for the unsecured loan? Is it a recorded doc? IMO you can pay off the first anytime and the trustee must reconvey. I sure hope the trustee is a neutral third party, like a title company. A payoff of the first is not a sale and not a refinance, so there is no breach of the terms of the second note/loan. I'm curious how you are explaining this to the lender, because if it were me, I wouldn't be explaining anything. Is it your plan to use your funds to pay off the first and get the deed at that time. That is a sale and probably does breach the terms of the second note. But given the time frame you are talking about, the lender wouldn't have time to get very far with any kind of civil action. : : Hi, I have tried finding answer to this in First Tuesday and searching board but couldnt find anything. : : Here is scenario: In California, I am working with homeowner on a refinance. He has 2 loans from a family friend. One was several years ago and was secured by a trust deed on property. The trust deed specifically references the promissory note. : : The second loan was unsecured. But it does mention in note that the balance of loan would be due upon sale or refinannce of the house. : : When calculating the payoff for the sale, my guess is that only the initial promissory note referenced in the trust deed is required to be paid in order to get reconveyance of trust deed. : : Our plan is to payoff initial trust deed to get the refi done. And then payoff 2nd loan partially with proceeds from refi, and partially from a lump sum payment due in a few weeks. : : 1. Can the private lender prevent us from pursuing this strategy? We explained our plan and they are insisting everything get paid on reconveyance of trust deed. : : 2. If the private lender doesnt cooperate, can the trustee still reconvey the trust deed if the original promissory note reflected in trust deed is paid off. : : Thanks in advance for assistance...love this forum. : One additional loan, the loans are over a year apart...not sure if that changes anything Follow Ups: Re: 2 loans from same private lender... Rick, the Probate Guy 2:59 PM, 01/13/10 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Tom: what instrument was used for the unsecured loan? Is it a recorded doc? : IMO you can pay off the first anytime and the trustee must reconvey. I sure hope the trustee is a neutral third party, like a title company. A payoff of the first is not a sale and not a refinance, so there is no breach of the terms of the second note/loan. : I'm curious how you are explaining this to the lender, because if it were me, I wouldn't be explaining anything. Is it your plan to use your funds to pay off the first and get the deed at that time. That is a sale and probably does breach the terms of the second note. But given the time frame you are talking about, the lender wouldn't have time to get very far with any kind of civil action. : : : : Hi, I have tried finding answer to this in First Tuesday and searching board but couldnt find anything. : : : Here is scenario: In California, I am working with homeowner on a refinance. He has 2 loans from a family friend. One was several years ago and was secured by a trust deed on property. The trust deed specifically references the promissory note. : : : The second loan was unsecured. But it does mention in note that the balance of loan would be due upon sale or refinannce of the house. : : : When calculating the payoff for the sale, my guess is that only the initial promissory note referenced in the trust deed is required to be paid in order to get reconveyance of trust deed. : : : Our plan is to payoff initial trust deed to get the refi done. And then payoff 2nd loan partially with proceeds from refi, and partially from a lump sum payment due in a few weeks. : : : 1. Can the private lender prevent us from pursuing this strategy? We explained our plan and they are insisting everything get paid on reconveyance of trust deed. : : : 2. If the private lender doesnt cooperate, can the trustee still reconvey the trust deed if the original promissory note reflected in trust deed is paid off. : : : Thanks in advance for assistance...love this forum. : : One additional loan, the loans are over a year apart...not sure if that changes anything [ 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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