Re: Consider this . . . - Posted by Bill Gatten
Posted by Bill Gatten on November 07, 1998 at 21:06:48:
No offense, but… (Your information is generally the best in the business and I’ve bought a few of your books and live by them…however…)… but … (as I was saying)… ahem… I’ve had informal assumptions called on me more than once. And I’ve also been a party to calling several others (‘used to own a chunk of a S&L, and served faithfully on the Credit Denial Committee each Tuesday and Thursday–where DOS’ were a major source of brand new higher rate loans, and a way to purge a few of the old skimpy-rate loans, if we could catch 'em doing “no-no’s”).
Another time unauthorized transfers get checked is when S&L’s sell in bulk to other banks. Prior to accepting the package, the new bank will frequently review the performance and condition of title on the loans they are considering acquiring.
I might suggest too that the reason most “alienations” are not being dealt with, is because most of us “aliens” are keeping the payments (and insurance!!!) current. In your own case, the 2-bit per hour clerks in the lender’s offices likely presume (when they see your checks) that their borrowers have hired your management company to handle collection and disbursements on their 1031 properties.
In my company, we currently hold about 600 titles in trust, on which we make payments on behalf of the beneficiaries: and neither have we EVER had a lender raise an eyebrow. Although, I must say that in every transaction we send the lender a notification that our collections company has been retained by their borrower to make all payments and handle all affairs of the property.
Bear in mind, Bill, I do agree with you to the extent that in most parts of the country, a Due-on-Sale call from a portfolio lender is unheard of, unless, of course, rates start climbing and they opt to “refresh their portfolios” (as it were), as has happened here in California more than a few times recently; or they’re selling off their loans. And, at least occasionally, employees of insured servicers (i.e., of FHA, FNMA, GNMA, VA, ETC.) do get their jollies and a gold star on their pointy little foreheads for turning folks in. They get two stars and a happy face, if it?s their own mother.
For whatever it?s worth,