Posted by Michael Morrongiello on October 25, 2000 at 17:02:48:
Are you willing to formally assume the debt on the property and if so would the lender forego their acceleration of the loan if you would take over formally the debt? That may be the cheapest way out of this…
I do not know where you heard or were told that by entering into title through a legal action you would be exempt from an exisint lender accelerating their loan. That is simply not true.
In many states regardless of HOW you obtained title to a property (through foreclosure, quit claim deed, long term option, deed into trust, transfer of beneficial interests, etc.) many lenders have the legal right to assert their claim that the infamous (DOS) due on sale clause provisions have be violated.
I hope you can work this out with the existing lender or try to quickly FIX and FLIP this deal “retail” to a buyer who can either get their own financing or with you using seller financing where when the dust settles the existing loan will be paid off.
You have some time (probably a 3-4 months ) of time to accomplish this as the foreclosure process will take some time to enforce.
To your success,