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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Safeguarding the reinstatement of a delinquent loan. Posted by JeffS-CA on May 07, 2003 at 9:25 AM In Reply to: Not Everyone Is Out to Get You posted by SeanW on May 06, 2003 at 12:22 AM : : Thanks Ward. Your response covers my concern about the sellers canceling the Equity Purchase Agreement. Now, I am concerned about the lender in this process. Please correct me if I'm wrong, but the lender is not required to accept payment to reinstate the loan during the 5 days preceding the Trustee's Sale (assuming we're talking about California). What can be done to assure that the lender will honor their word by accepting the payment and canceling the sale? : : To cover this risk, I think it would be wise to wait to give the initial cashier's check to the sellers until after a Notice of Rescission is recorded (as a contingency of the EPA). : : Assuming the lender accepts your payment, what is preventing them from going ahead with the sale? A lawsuit? I hope there is something in the Code that prevents them from proceeding with the sale if there are no funds due to them at the time. : ------------------ : This might be a valid concern with a pipsqueak, loanshark lender. But institutional lenders are in the business of doing business. Not looking for ways to steal houses from small investors, and fight lawsuits. : I think a more valid concern would be the communication between the lender and trustee, to make sure the sale is cancelled. --------------------------- Thanks for the reply Sean. I agree with you that "everyone is not out to get me", but I also know I will likely not lose money if I manage my risks adequately. You gave an excellent example of how something could go wrong with this part of the process: what if there is a mis-communication between the lender and the trustee before the sale is completed? Is the lender going to give the payment back if the sale is completed? Probably, you will get what's left of the sale proceeds, if any. So the question remains (slightly reworded): what can be done to assure that the lender will, on the day of the sale, accept payment to reinstate a loan and cancel the sale? Follow Ups: Re: Safeguarding the reinstatement of a delinquent loan. Jorge 10:24 AM, 05/08/03 (1) Re: Safeguarding the reinstatement of a delinquent loan. JeffS-CA 3:47 PM, 05/10/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : Thanks Ward. Your response covers my concern about the sellers canceling the Equity Purchase Agreement. Now, I am concerned about the lender in this process. Please correct me if I'm wrong, but the lender is not required to accept payment to reinstate the loan during the 5 days preceding the Trustee's Sale (assuming we're talking about California). What can be done to assure that the lender will honor their word by accepting the payment and canceling the sale? : : : To cover this risk, I think it would be wise to wait to give the initial cashier's check to the sellers until after a Notice of Rescission is recorded (as a contingency of the EPA). : : : Assuming the lender accepts your payment, what is preventing them from going ahead with the sale? A lawsuit? I hope there is something in the Code that prevents them from proceeding with the sale if there are no funds due to them at the time. : : ------------------ : : This might be a valid concern with a pipsqueak, loanshark lender. But institutional lenders are in the business of doing business. Not looking for ways to steal houses from small investors, and fight lawsuits. : : I think a more valid concern would be the communication between the lender and trustee, to make sure the sale is cancelled. : --------------------------- : Thanks for the reply Sean. I agree with you that "everyone is not out to get me", but I also know I will likely not lose money if I manage my risks adequately. : You gave an excellent example of how something could go wrong with this part of the process: what if there is a mis-communication between the lender and the trustee before the sale is completed? Is the lender going to give the payment back if the sale is completed? Probably, you will get what's left of the sale proceeds, if any. : So the question remains (slightly reworded): what can be done to assure that the lender will, on the day of the sale, accept payment to reinstate a loan and cancel the sale? Optional Link URL: Link Title: Optional Image URL: [ 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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