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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Not exempt from the due-on-sale clause. Posted by Ward-CA- on June 11, 2003 at 6:27 PM In Reply to: Due on Sale with Trustee's Deed. posted by Travis-CA on June 11, 2003 at 1:31 PM : Does a due on sale clause apply when property is transferred by trustee's deed? For example if I am the winning bidder of a 3rd at the trustee sale, I will inherrit the 1st and 2nd, will they and can they call those loans due upon the transfer? or do I automaticly assume them, If assumed do I need to qualify for each and every loan inherrited? : : Thanks, : : Travis =•=•=•=•=•=•=•=•=•=•= Travis, Yes, the due-on-sale clause applies upon a property transfer to an outside bidder via a foreclosure sale. So if you’re the winning bidder at the foreclosure auction of a 3rd trust deed you will take title subject to the remaining, senior 1st and 2nd trust deeds. The beneficiaries of the 1st and 2nd can legally call their loans due as a consequence of the transfer of ownership to you, the winning bidder at the trustee’s sale of the foreclosing 3rd trust deed. There’s no automatic assumption of existing liens except for the nine exemptions that are enumerated in the Garn-St Germain Depository Institutions Act of 1982. [US Code Title 12 Chapter 13 Sec.1701-j3(d)] None of the nine exemptions apply to this type of purchase. If you enter into a formal, written assumption of the 1st and 2nd be prepared to qualify financially and to pay an assumption fee to each lender of approximately 2% plus $250.00. Hope this helps. Follow Ups: Re: Not exempt from the due-on-sale clause. David 11:18 AM, 06/12/03 (2) Non-exemption still stands... Ward-CA- 9:11 PM, 06/12/03 (1) As a practical matter.... Gary 9:55 AM, 06/14/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Does a due on sale clause apply when property is transferred by trustee's deed? For example if I am the winning bidder of a 3rd at the trustee sale, I will inherrit the 1st and 2nd, will they and can they call those loans due upon the transfer? or do I automaticly assume them, If assumed do I need to qualify for each and every loan inherrited? : : : : Thanks, : : : : Travis : =•=•=•=•=•=•=•=•=•=•= : Travis, : Yes, the due-on-sale clause applies upon a property transfer to an outside bidder via a foreclosure sale. : So if you’re the winning bidder at the foreclosure auction of a 3rd trust deed you will take title subject to the remaining, senior 1st and 2nd trust deeds. The beneficiaries of the 1st and 2nd can legally call their loans due as a consequence of the transfer of ownership to you, the winning bidder at the trustee’s sale of the foreclosing 3rd trust deed. : There’s no automatic assumption of existing liens except for the nine exemptions that are enumerated in the Garn-St Germain Depository Institutions Act of 1982. [US Code Title 12 Chapter 13 Sec.1701-j3(d)] : None of the nine exemptions apply to this type of purchase. If you enter into a formal, written assumption of the 1st and 2nd be prepared to qualify financially and to pay an assumption fee to each lender of approximately 2% plus $250.00. : Hope this helps. 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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