Ward and his office helpers

InnoVest Resource Management's

Foreclosure Forum

Home

Discussion Board

"Hands-On" Training

Title Holding Trust

Speaking Schedule

Store

Foreclosure Codes

50 State Resource Data

Foreclosure Glossary

Foreclosure Statistics

60+ Yrs Interest Rates

Fillable Forms

Archived Articles

Dingbat Retirement Plan

Links

Contact / Map

Home

 

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ]

Non-exemption still stands...

Posted by Ward-CA- on June 12, 2003 at 9:11 PM

In Reply to: Re: Not exempt from the due-on-sale clause. posted by David on June 12, 2003 at 11:18 AM

: Ward,

: Doesn't this Q&A at http://www.legalwiz.com/board.htm suggest otherwise?

: 29. Can a junior lien holder foreclose without triggering a due-on-sale on the senior mortgage? - Top

: The answer is "yes." Several court cases considered the issue and reasoned as follows: if a mortgage lien permits the borrower to further encumber the property with junior liens (ie, a 2nd mortgage), the the default and foreclosure of a junior lien is a reasonable consequence thereof. Thus, a 2nd lien holder can foreclose, take title subject to the 1st mortgage, and the due-on-sale has not been triggered. - Updated: July 12, 2002

: David

=•=•=•=•=•=•=•=•=•=•=

David,

The supreme law of the land is federal law. And in my reply to your post I cited the federal Garn-St. Germain Depository Institutions Act wherein Congress allows the imposition of the due-on-sale clause in all cases with just nine exemptions, and taking title via the foreclosure sale of a junior lien is not one of them.

Look up the Garn-St. Germain regs. and you’ll come to the same inescapable conclusion.

Hope this helps.




Follow Ups:


Post a Followup:

Name    : 
E-Mail  : 
Subject : 
Comments: 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

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction.

Copyright © 1997-2003, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455

[an error occurred while processing this directive]