Help! Foreclosure,Due on sale,Sub2 situation - Posted by Tom-AL
Posted by Tom-AL on September 04, 2003 at 10:42:22:
I just purchased a house subject 2, recorded the deed in trust,
etc. In the beginning the house seemed like a good
ARV $85 - $90,000, Loan Balance $55,000 piti $572.00
The catch was the owner is 3 payments behind and in
foreclosure. I did everything just as the get the deed type materials/courses
teach including letter to the mortgagor stating I am property manager, etc.
I got a call yesterday from the Mortgagor whom says the
foreclosure process has already begun and referred me
to the attorney whom said they do not have to accept
the 3 back payments that I have already mailed to them
(they are holding the check). They say they can call
the loan due because of the default and proceed with
The mortgagor’s are private individuals.
This question is likely state specific but I am going
to ask anyway. Can a lender refuse back payments
and call a loan due the way I am describing? Is this
If I am not able to stop the due on sale and/or foreclosure process, and I want to pay off the mortgage with cash, will I have any trouble purchasing the house this way without the former owner’s present?The house was in foreclosure when I recorded the deed.
I have limited power of attorney for both of the previous owners (whom have left town) I am the beneficiary of the trust which I recorded last week, and I have a signed purchase agreement buying the home subject 2.
I own the home, the former owner’s own the loan. How is the best way to structure if done this way?
By the way, my exit will be to retail the house for $90 - $95,000, cashing the loan out or selling on a lease purchase.
Thanks for any advice.