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Re: They dont careIn Reply to: They dont care posted by Lughead on April 12, 2003 at 11:31 PM : Dude : you are right - 99% of lenders will NOT care who pays : they may take notice at the Named Insured : if you do ever become delinquent - then they will care : no guarantees
You are missing one more part of your education. They may, some will some won't, take the money but I can almost assure you that they will raise up and say "What's going on?" when the insurance carrier sends them the change of loss payees on the insurance. That is a direct threat to their security and they become very interested. Slight little problem that if you do not change loss payee and then the property is destroyed--you lose --If you do they find out...What is your solution? Better listen to Ward, THT is best. ----------->Bill : good luck : : I've seen your Title Holding Trust arguments here many times. But I still wonder how likely it is that a lender would REALLY care, if a check arrives from someone other than the trustor, when you're doing a subject-to. You'd think they'd be glad to see a non-performing loan come current! : : (I'm tempted to call a few lenders at random and ask. I bet they rarely look at the name on the check... they just take the money. The checks are probably being processed by $10/hr clerks who are mainly looking for thinks like missing amounts.) : : It seems to me where the red flag comes up is when notifying the lender of a change in assignment. If you succeed in talking a trustor into keeping quiet about the deed change, it should be pretty easy to keep the payments going. (Especially if you set up a shell business name like "Bill Consolidation Systems" or something. If the lender's billing department scrutinizes the check at all, they'd assume the old debtor is just using a bill paying service to keep his debts current. They should like that, actually.) : : I guess the real sticker is if the trustor wants completely out of all obligations. Then you have to tell the lender something. : : OK. To make this post a question, isn't it possible that attempting to change assignment of the trust deed, even to a THT, may in fact draw more scrutiny that doing nothing? And that the first plan of attack on a buyout, would be to try and assure the trustor he won't get stuck with more bills, before talking about assigning the trust deed at all?
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