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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Reinstatment, overbid, and taking title "subject to".. Posted by Ward-CA- on April 08, 2003 at 5:59 AM In Reply to: Reinstating, Bidding, and taking over payments posted by Lori on April 07, 2003 at 1:46 PM : I'm a mortgage underwriter who is about to jump into this head first, and wanted to confirm some of what I've been hearing. Your site is VERY helpful, and I'll try to make it to your seminar tomorrow night in L.A. : 1) Does the reinstatement amount ALWAYS become the entire loan amount after the trustee sale date is set? Or can it be negotiated with the lender during those 21 days? : 2) Is it true that at auction, any amount over the minimum bid goes to the owner who defaulted? (ie, loan amt. is 130k, and winning bid is 200k. Hence, 70k goes to owner who defaulted mtg.) : 3) In hitting up the owner at the tail end of the 1st stage, I'd rather take over payments than assume a loan. Does anything need to be arranged for that? Switch of address for where the monthly mortgage coupons are to be sent? Is escrow involved in the 'taking over payment' process? Any way to phrase it so that the original owner knows I'm not going to further ruin their credit with unmade payments? : btw - the pics on your site are awesome. Elsa and Helen are adorable! I just think it's a great commentary on your character that despite a successful and busy schedule, you make quality time for your family. =•=•=•=•=•=•=•=•=•=•=•= Lori, #1. The junior lienors’ right of reinstatement runs up to 5 business before the scheduled sale date. During the final 5 days it’s up to the discretion of the beneficiary (lender) to either accept the reinstatement amount or insist on the full payoff of the foreclosing loan. #2. No. The way it works is that any amount bid in excess of the total amount owed the foreclosing lender goes in a downward progression to each junior lien in succession. Once all the junior lienors are paid the defaulting owner is in line to be paid the final excess. In your example, if there were no junior lienors, then the 70K would go to the defaulting owner. #3. You’re smart to avoid assuming someone else’s loan. Like most things in life, stuff works best if done with a little planning. In this arena it’s the hazard/fire insurance that needs to be finessed. Usually the payment coupons are sent to a post office box. The best antidote for a skeptical owner concerning your vow to make timely payments on the existing financing is to give her a performance trust deed. So you could word it like this, “Mrs. Jones, if I could create a device that would allow you to force me to pay off your loan in full if I ever missed making your loan payments to the point where a notice of default was recorded, would that make you feel a lot more confident with my promise to pay? OK, let me show how simply it works.” Hope this helps. Follow Ups: Re: Reinstatment, overbid, and taking title fredp 3:14 PM, 04/15/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : I'm a mortgage underwriter who is about to jump into this head first, and wanted to confirm some of what I've been hearing. Your site is VERY helpful, and I'll try to make it to your seminar tomorrow night in L.A. : : 1) Does the reinstatement amount ALWAYS become the entire loan amount after the trustee sale date is set? Or can it be negotiated with the lender during those 21 days? : : 2) Is it true that at auction, any amount over the minimum bid goes to the owner who defaulted? (ie, loan amt. is 130k, and winning bid is 200k. Hence, 70k goes to owner who defaulted mtg.) : : 3) In hitting up the owner at the tail end of the 1st stage, I'd rather take over payments than assume a loan. Does anything need to be arranged for that? Switch of address for where the monthly mortgage coupons are to be sent? Is escrow involved in the 'taking over payment' process? Any way to phrase it so that the original owner knows I'm not going to further ruin their credit with unmade payments? : : btw - the pics on your site are awesome. Elsa and Helen are adorable! I just think it's a great commentary on your character that despite a successful and busy schedule, you make quality time for your family. : =•=•=•=•=•=•=•=•=•=•=•= : Lori, : #1. The junior lienors’ right of reinstatement runs up to 5 business before the scheduled sale date. During the final 5 days it’s up to the discretion of the beneficiary (lender) to either accept the reinstatement amount or insist on the full payoff of the foreclosing loan. : #2. No. The way it works is that any amount bid in excess of the total amount owed the foreclosing lender goes in a downward progression to each junior lien in succession. Once all the junior lienors are paid the defaulting owner is in line to be paid the final excess. : In your example, if there were no junior lienors, then the 70K would go to the defaulting owner. : #3. You’re smart to avoid assuming someone else’s loan. Like most things in life, stuff works best if done with a little planning. In this arena it’s the hazard/fire insurance that needs to be finessed. Usually the payment coupons are sent to a post office box. : The best antidote for a skeptical owner concerning your vow to make timely payments on the existing financing is to give her a performance trust deed. So you could word it like this, “Mrs. Jones, if I could create a device that would allow you to force me to pay off your loan in full if I ever missed making your loan payments to the point where a notice of default was recorded, would that make you feel a lot more confident with my promise to pay? OK, let me show how simply it works.” : Hope this helps. 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