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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Doesn't really address the OP's concern... Posted by Rick Harmon on May 20, 2010 at 5:07 PM In Reply to: Re: Second deed of trust posted by hard money lender on May 20, 2010 at 10:22 AM Think in practical terms about the worst that could happen. First of all, there is no due-on-sale police, so we won't have to bake you a cake with a file hidden inside to help you break out of jail. Second, follow the money. Upon recording your Trustee's deed, the first holder (or servicer) is probably not concerned by the fact that someone else is now the legal owner and probably won't expend resourses to monitor for subsequent tranfers. If the loan is being serviced by a company other than the bene, it's in their best interest for the loan to continue in place and not to be paid off. Third, institutional lenders don't normally care much unless the spread between the yield that they're getting and a higher market yield becomes great. Meaning, if there ain't a buck in it, they won't lift a finger. Fourth, think thru the timeline. Let's say you bought a second behind a first that I owned on a property that I've always dreamed of owning and that you are raining on my parade. I'd have to figure out that there was a transfer, that you were the new owner, send you an acceeleration letter ("...It's come to my attention that..."). Then I'd have to start foreclosure on my note based on the unauthorized transfer as the breach basis. Even if it did get personal, I'd forget my dreamhouse at the drop of a hat for the right price, because I'm a practical dreamer. So, if the lender gets cute, pay'em off or sell the property really fast. There are plenty of things to fear, but this isn't one of them. Focus on doing deals, improving your skills, making more money and not on your fears. Follow Ups: sure, it addresses the OP's concern hard money lender 9:15 PM, 05/20/10 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Think in practical terms about the worst that could happen. : First of all, there is no due-on-sale police, so we won't have to bake you a cake with a file hidden inside to help you break out of jail. : Second, follow the money. Upon recording your Trustee's deed, the first holder (or servicer) is probably not concerned by the fact that someone else is now the legal owner and probably won't expend resourses to monitor for subsequent tranfers. If the loan is being serviced by a company other than the bene, it's in their best interest for the loan to continue in place and not to be paid off. : Third, institutional lenders don't normally care much unless the spread between the yield that they're getting and a higher market yield becomes great. Meaning, if there ain't a buck in it, they won't lift a finger. : Fourth, think thru the timeline. Let's say you bought a second behind a first that I owned on a property that I've always dreamed of owning and that you are raining on my parade. I'd have to figure out that there was a transfer, that you were the new owner, send you an acceeleration letter ("...It's come to my attention that..."). : Then I'd have to start foreclosure on my note based on the unauthorized transfer as the breach basis. Even if it did get personal, I'd forget my dreamhouse at the drop of a hat for the right price, because I'm a practical dreamer. : So, if the lender gets cute, pay'em off or sell the property really fast. There are plenty of things to fear, but this isn't one of them. Focus on doing deals, improving your skills, making more money and not on your fears. [ 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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