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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Confused Trustor Posted by Rick Harmon on November 19, 2003 at 8:07 AM In Reply to: Confused Trustor posted by Lughead on November 18, 2003 at 9:53 PM : hello : we took a deed in lieu on a property - and have been paying on the senior note : just the other day the former Trustor left a message that they applied for a loan and were turned down because the other loan still shows on their credit report : we disclosed this to them at the time of the deed in lieu : any suggestions on how to deal with these folks - : 1) obviously even though this was explained to them and they signed an ackowledgement, they are still confused : 2) is there a way for them to be able to qualify for a new loan since we are making payments on the note? : thank you ******************* Lug- I think the only way that this could occur is if the lender in question on the property that you accepted the Deed-in-Lieu would be required to provide some kind of acknowledgement of the transfer to you and a subsequent formal assumption, also by you. In actuality, your Trustor is still the 1st TD lender's borrower, not you. The Trustor still has the obligation in spite of the fact that the security is not longer his/her's. Another approach could be to work in conjunction with the Big 3 credit repositories and see what they would require to you to provide in order to change the debt reflected on the various credit reports. For myself, I would not feel comfortable in doing much of either of these. My foreclosure trustee refers to your type transaction as a "Deed-in-Loo" because of these dangling issues. He has also prepared an elaborate multi-page disclosure affadavit for this purpose. For these and other reasons, I think the Deed in Lieu has too many loose ends for my use. Rick Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : hello : : we took a deed in lieu on a property - and have been paying on the senior note : : just the other day the former Trustor left a message that they applied for a loan and were turned down because the other loan still shows on their credit report : : we disclosed this to them at the time of the deed in lieu : : any suggestions on how to deal with these folks - : : 1) obviously even though this was explained to them and they signed an ackowledgement, they are still confused : : 2) is there a way for them to be able to qualify for a new loan since we are making payments on the note? : : thank you : ******************* : Lug- : I think the only way that this could occur is if the lender in question on the property that you accepted the Deed-in-Lieu would be required to provide some kind of acknowledgement of the transfer to you and a subsequent formal assumption, also by you. : In actuality, your Trustor is still the 1st TD lender's borrower, not you. The Trustor still has the obligation in spite of the fact that the security is not longer his/her's. : Another approach could be to work in conjunction with the Big 3 credit repositories and see what they would require to you to provide in order to change the debt reflected on the various credit reports. : For myself, I would not feel comfortable in doing much of either of these. My foreclosure trustee refers to your type transaction as a "Deed-in-Loo" because of these dangling issues. He has also prepared an elaborate multi-page disclosure affadavit for this purpose. For these and other reasons, I think the Deed in Lieu has too many loose ends for my use. : Rick 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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