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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Junior lienor not exempt from the due-on-sale clause... Posted by Ward-CA- on December 04, 2003 at 5:37 PM In Reply to: Owning 2nd and Foreclosing posted by Mark on December 04, 2003 at 10:48 AM : I looked through all posts relating to JBB and and tried to find the answer to this question but did not-any help is appreciated. : if I buy a 2nd, reinstate the first, and then foreclose on the 2nd - no one buys at the auction, which means I have title subject to senior liens. : one of the senior liens will be the 1st mtg - does the fact that title switched from trustor to me trigger a due-on-sale clause, or am I able to continue making payments under the terms of the 1st until property is sold. =?=?=?=?=?=?=?=?=?=?= Mark, The due-on-sale clause in a senior lien can be exercised against a junior lienor who received title to real property via the foreclosure of their junior lien. Initially such a situation was planned to be exempt under the 1982 Garn-St Germain Act. But, like all things political, that particular exemption didn't make it in the final version of the legislation. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I looked through all posts relating to JBB and and tried to find the answer to this question but did not-any help is appreciated. : : if I buy a 2nd, reinstate the first, and then foreclose on the 2nd - no one buys at the auction, which means I have title subject to senior liens. : : one of the senior liens will be the 1st mtg - does the fact that title switched from trustor to me trigger a due-on-sale clause, or am I able to continue making payments under the terms of the 1st until property is sold. : =?=?=?=?=?=?=?=?=?=?= : Mark, : The due-on-sale clause in a senior lien can be exercised against a junior lienor who received title to real property via the foreclosure of their junior lien. Initially such a situation was planned to be exempt under the 1982 Garn-St Germain Act. : But, like all things political, that particular exemption didn't make it in the final version of the legislation. : 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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