2nd mortgage is a trigger for due on sale - Posted by rob

import · January 19, 2000, 9:59am

Posted by rob on January 19, 2000 at 17:12:52:

Thanks for that URL…
Rob

import · January 19, 2000, 9:59am

Posted by rob on January 19, 2000 at 10:59:55:

I had a discussion today with my attorney. He tried to tell me that technically a sencond mortgage is a conveyance of interest in the property and technically a due on sale violation? Anyone ever been told this?
Rob

import · January 19, 2000, 5:15pm

Re: 2nd mortgage is a trigger for due on sale - Posted by chris

Posted by chris on January 19, 2000 at 18:15:31:

Rob-

Please give us a follow up after you “educate” the attorney.

-Thanks, Chris

import · January 19, 2000, 11:00am

Re: 2nd mortgage is a trigger for due on sale - Posted by Rob FL

Posted by Rob FL on January 19, 2000 at 12:00:46:

JD is correct, 2nd mortgages are exemption #1 of the Garn St. Germaine Act.

Here is the URL: 12 U.S. Code § 1701j–3 - Preemption of due-on-sale prohibitions | U.S. Code | US Law | LII / Legal Information Institute

import · January 19, 2000, 10:08am

Re: 2nd mortgage is a trigger for due on sale - Posted by JD

Posted by JD on January 19, 2000 at 11:08:55:

(Speaking specifically with reagrd to mortgages that fall under the Jurisdiciton of the GSG act, which is the vast majority of mortgages): Your attorney is mistaken.