DOS CLAUSE - Posted by Brad

Real Estate Investing Real Estate Law
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Re: DOS CLAUSE - Posted by HankM

Posted by HankM on April 09, 1999 at 20:32:07:

Brad,

There are some folks below whose opinion I value that have responded … however, let me try a different tact. Go get an MBA. Understand capital efficiency and then ask yourself whether a creative, violate the DOS clause, or a cash purchase is the better idea … for everyone. The seller is out of “the problem” you have an efficient capital position and the lender is only disadvantaged to the extent that you have extended the interest rate risk of the original obligation beyond what would have happened if a refinance had occured… unless you’re dealing with a loan from a LONG time ago, that is not an issue.

Just my $0.02, educate yourself … this isn’t the dark side, it’s the smart side.

HankM

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Re: DOS CLAUSE - Posted by Rob FL

Posted by Rob FL on April 09, 1999 at 19:51:04:

I don’t think you understand the original reasoning behind the DOS clause. It was not designed to keep unqualified buyers from buying the property. It was designed to force buyers to refinance the current outstanding low interest rate loan on the property in order for the lender to get the low interest rate loan out of their portfolio and lend the money out at a higher rate. In 1982 when the Garn St. Germain Act went into affect, interest rates were 11-12%. Do you think a lender with a 11% loan would want you to refinance now when interest rates are 7%? Probably not. But anyway, that was the reasoning for the law. Banks didn’t want to be their own worst competition in the interest rate wars.

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Re: DOS CLAUSE - Posted by phil fernandez

Posted by phil fernandez on April 09, 1999 at 19:15:48:

Hi Brad,

You don’t tell us why you think violating the DOS clause is stupid. It is not criminal. In fact the lender has the right to call the mortgage in. But why would the lender do that. Because the lender realizes if they foreclose they will have time, energy and lost profit wasted in the process.

Banks aren’t in business to lose money. Why would they want to call the loan in and risk foreclosure when they are getting monthly payments on their loan.

Let’s not make excuses. Let’s make money.

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my name is karp and I violate the DOSC… - Posted by karp

Posted by karp on April 09, 1999 at 19:09:40:

I am beyond shame.
In fact, being beyond shame feels pretty good.
I got a call from Centura Bank today asking me where my
payment was. I said hang on andd called on the other line to my bank and found it had cleared and been cashed by Centura.

I told them so and they were happy and said they would figure it out and call me back Monday.

Did I mention I never assumed the loan from Centura. Nope, I just started making payments on it.

Thanks,

karp

PS: Are you REALLY a Fast Skater at aol.com?
whoa.

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Re: Why? - Posted by Stacy (AZ)

Posted by Stacy (AZ) on April 09, 1999 at 19:00:25:

If the lender, at their option (not obligation) decides to call the loan, simply refi or get a new loan. As long the “violator” is in a position to do this, what possible harm has been done? Please clarify, your post. You need something to support your theory.

Stacy

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Re: DOS CLAUSE - Posted by JoeKaiser

Posted by JoeKaiser on April 09, 1999 at 18:57:48:

Shameful?

Give me a break.

Joe

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A word for Rick - Posted by Brad

Posted by Brad on April 12, 1999 at 03:05:03:

Hey Rick, here is a new word for you. It’s called DISBARRED.

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What a Joke! - Posted by JohnBoy

Posted by JohnBoy on April 10, 1999 at 20:27:53:

No, they’re just completely dishonest up front with you so they can take your money!

They claim to have a good rating with the better business bureau in Flordia and that’s the ONLY thing they will provide to anyone as their reference. They preach about how great the BBB is, but they refuse to stand behind what the BBB reccomends any consumer to do before investing their money with a company such as:

? Be wary of quick-profit schemes. (Like Nationwide)

? Look with doubt on promises that can ?double your money.? (Like Nationwide)

? Turn down money requests accompanied by high-pressure warnings such as, ?Tomorrow will be too late.?

? Always demand written information about the organization behind the investment plan. (Nationwide refuses)

? Get a professional opinion. (Can’t find one regarding Nationwide)

? When in doubt, make no commitment, and do not be afraid to hang up the telephone, without explanation, on an aggressive promoter. (Good advice)

? Ask for a prospectus, offering circular, financial statement or similar document before you consider investing. (Nationwide refuses by giving lame excuses)

Nationwide claims they are all these things, but when asked for references or addresses of properties they partnered any deals on, they refuse and give lame excuses!

Nationwide says to check them out with the BBB, but the only problem is the BBB in Ft. Meyers, Fl., where nationwides home office is located, no longer has a BBB since July of 97. Is that what your calling an honest company without trying to pull any dishonest things???

Here is part of a news release from the CBBB regarding the BBB in Fort Meyers, Fl. The BBB that Nationwide refers to as their ONLY source as a reference, you be the Judge:

Council of Better Business Bureaus, Inc.
Press Release
FOR IMMEDIATE RELEASE

Council of Better Business Bureaus Expels Miami/Ft. Myers BBB
Arlington, VA., July 30, 1997 – The Council of Better Business Bureaus (CBBB) announced today that it had expelled the Better Business Bureau of South Florida, located in Miami and Ft. Myers, Florida, from membership in the CBBB. Expulsion by the CBBB revokes the right of that organization to use the BETTER BUSINESS BUREAU name and TORCH logo, which are owned by the CBBB.

The CBBB Board of Directors originally expelled the Better Business Bureau in South Florida (hereafter referred to as the Miami BBB) several months ago after finding a recurrent failure on the part of the Miami BBB to meet CBBB Policy and Operating Standards. The expulsion did not take effect at that time, but was instead suspended by the CBBB, because of steps the Miami BBB agreed to take that were expected to produce full compliance with CBBB standards and policies in a reasonable time.

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DumbStampped? - Posted by JoeKaiser

Posted by JoeKaiser on April 10, 1999 at 16:30:12:

.

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No Offence, Dude. I wouldn’t give you my personal info either. (nt) - Posted by .

Posted by . on April 10, 1999 at 15:01:57:

NT

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Re: I think it’s obvious now . . . - Posted by Brad

Posted by Brad on April 10, 1999 at 15:05:53:

Joe, I’m not joking. I am very serious. I noticed that Rick made the comment that he violated the DOS Clause. Since Dan made the comment that Rick is an attorney in Iowa, I’m sure that the Iowa Bar Association would be interested in such a comment. To prove to you that I am completely serious, the number to the Iowa Bar Association is (515)243-3179.

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Re: SHOW ME THE EVIDENCE - Posted by Brad

Posted by Brad on April 10, 1999 at 13:10:39:

That is what is dishonest Jim, the transfer without telling the lender. It’s too bad that people like yourself don’t have anymore decency than to do something sleazey like that. If you are so successful, then why do you have to use such underhanded tactics? A truly successful person wouldn’t have to sneak around behind the bank’s back. That is pathetic.

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Re: Thats why we have law makers,and the law makers haven’t deemed it a crime to buy property subject to a loan with a DOS - Posted by Brad

Posted by Brad on April 10, 1999 at 12:04:48:

Whenever you take a place subject to the first mortgage, and do NOT inform the mortgage holder that you have done so, you are being DISHONEST! Remember, the mortgage holder has the OPTION to call the loan. But by not telling them what you doing, you are robbing the bank of the option of calling the loan. If you cannot see this as being wrong, then there is something seriously wrong with you. This is dishonesty, and LYING. It is sad when people don’t have to ability to make money in an HONEST way.

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Well said… - Posted by Ben

Posted by Ben on April 10, 1999 at 21:33:19:

A wise man once said “The difference between the rich
and the super-rich is the proper use of leverage”. I always use a friend of mine as an example. He seeks out
particular stocks which have a high dividend and potential for appreciation. He then borrows the money
from the bank to purchase the stock, has the dividend
pay for most, if not all of the bank interest, and sits back and waits for the stock to appreciate.He has the bank paying for the stock and the dividend paying the interest so he can afford to hold it indefinitely. Brilliant!

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Re: I’m a stupid guy - Posted by Brad

Posted by Brad on April 10, 1999 at 24:45:17:

That’s alright, it will come back to haunt you one day. Those of us who choose to do our business in an HONEST and RESPECTABLE manner will be the ones receiving the spoils. Someone who is really successful in the business has the money and doesn’t have to LIE.

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Re: DOS CLAUSE - Posted by Brad

Posted by Brad on April 10, 1999 at 24:41:32:

I can conduct my business dealings in good conscience. Can you do the same? Can you look at yourself in the mirror each night when you participate in dishonest business tactics?

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Re: DOS CLAUSE - Posted by Brad

Posted by Brad on April 10, 1999 at 24:39:47:

I think it is completely disgraceful how some people would try to justify conducting such dishonest tactics. If it makes them feel better to attempt to justify what they do, then I pity them. It is sleazy business dealings.

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Re: DOS CLAUSE - Posted by Brad

Posted by Brad on April 09, 1999 at 19:22:42:

I didn’t say it was criminal. I said it was stupid. And furthermore, I think it is extremely shameful and sleazey. Anyone with any decency would never practice such disingenuous tactics.

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my name is Kevin Lee I’m a DOSC violataholic… - Posted by Kevin Lee

Posted by Kevin Lee on April 10, 1999 at 20:51:53:

Yes, I AM. And I did it more than ONCE or TWICE!
I wonder this Brad guy would go around grocery stores and tell them they are dishonest and practicing unethical tactics for not posting their purchase price of the goods and let customers know all the details of how they make profit… He sure sounds like he would do that.

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Let’s have a Due On Sale Violators Anonymous Club - Posted by Rick Vesole

Posted by Rick Vesole on April 10, 1999 at 03:57:11:

I am Rick Vesole and I have “violated” the Due on Sale clause.