the clause in any mortgage i have ever had with the bank states that the borrower “intends” to live in the property for a given period of time (usually the first 9-12 months). if the seller has been living there all this time then the intent is there.
when the performance mortgage is recorded the bank is not notified. there are no changes to the insurance and no transfer of title.
i have never heard of a bank even knowing that the performance mortgage was filed let alone call the loan due because of it.
good luck with your offer!
BMP
Creditors Chase Me and Seller… Watchout REI! - Posted by Clint_Detroit
Posted by Clint_Detroit on July 09, 2002 at 11:04:47:
Hello fellow investors,
I was just thinking about how to protect myself from someone who is being chased by creditors? I believe that most people have cash or debt issue when selling Subject to or doing Lease Options. If not, whatever, let’s just go with that instead of finding a new seller.
They have money problems.
I “may” be able to assist by taking over payments for a while. How do i stop creditors from putting leins on the house? (Say, utility companies, or a credit card company.)
Am I stuck with these new leins taking profit out of the deal for me?
The way i see it…
#1 If i use a LO. they can put whatever leins they want against the house.
#2 If i Sub2 then i don’t show change in ownership, so the creditors still can lein on the home.
#1 If i use a LO. they can put whatever leins they want against the house.
yes, but if you file a performance mortgage you are now a leinholder and anyleins filed against the seller on the property will now be junior in position to you.
BMP
Brian,
I am getting ready to make an offer via L/O. I was considering using the perfomance deed as you mentioned, however, after reading the Deed of Trust, it stated something to the effect that if the property is not owner/occupied they can call the loan due.
If a perfomance deed is recorded, can’t the lender call the loan due? In this case, they would stand to make their money! Owner has a $112,000 loan on a house worth $160K. I am going to offer $130. Your response is appreciated!
Thanks
Re: Creditors Chase Me and Seller… - Posted by Clint_detroit
Posted by Clint_detroit on July 10, 2002 at 13:49:22:
Thank you for your advice.
The Performance Mortgage idea sounds great.
I’ve bought some course before, but i don’t remember any talking about a Performance Mortgage.
I guess i’ll have to find one.
Hey, are you from Michigan?
I just started investing in/near Detroit Michigan.
Maybe we could chat REI offline sometime.