Posted by Kevin on May 18, 2006 at 16:56:57:
You people are so naive. You think anyone who answers questions is a pro. lol
How many houses you bought there Steve?
HELP !!!Triggered due on sale clause - Posted by T.J.
Posted by T.J. on May 15, 2006 at 07:30:31:
I think that I have triggered the due on sale clause for a subject 2 property.
I purchases a property subject2 as a land trust in Feb the owners were in foreclosure, I settled(feb28) the property and cured the foreclosure(march). Made the first payment in April (14th ) Via phone from my personal account(not sure if this was a mistake). Git the deed in the mail about a week or two ago. Went to make an payment yesterday and was unable to do so they said that I needed to speak to someone and they were unavailable at this time. Went online to look at the account and the information is unavailable. I think the bank Washington Mutual is wanting me to speak to them. I am not certain as to what I should say. I have had the house on the market for 58days and just reduced the price in hopes of a quick sale. I am looking for any advice for what to do and or say to the lender.
Re: HELP !!!Triggered due on sale clause - Posted by JohnK
Posted by JohnK on May 18, 2006 at 21:49:56:
This is why subject 2 is a scam. You are in deep doo doo, or at least WAMU is, and probably many other banks. Fasten your seatbelts, folks, as this is going to be quite a bumpy ride. The depression is right around the corner.
UPDATE TO HELP !!!Triggered due on sale clause - Posted by T.J.
Posted by T.J. on May 17, 2006 at 20:57:27:
First Thanks for all of your advice and input.
I continued to check the board tho see what everyone had to say, while putting off the inevitable. I finally called WAMU yesterday followed the prompts and you are never going to guess what happened NOTHING…It no longer prompted me to wait for a representative. Needless to say I made my payment(took the advice of one poster and made the payment a little larger than owed) and moved on. Not sure why or what happen.
Wow I cannot believe I overreacted. This is my first sub2 deal. Thanks for everyones help and input I think a I really do need to relax!
Relax - Posted by stan
Posted by stan on May 15, 2006 at 14:30:15:
I’ve had Sub2s with Washington Mutual loans on them. They know and understand exactly what I’m doing and have never raised an eyebrow.
They’re not about to call the loan unless you do something really stupid which backs them into a corner, policy-wise.
stan
Re: HELP !!!Triggered due on sale clause - Posted by LeasePurchase
Posted by LeasePurchase on May 15, 2006 at 14:15:26:
And you guys wonder why we recommend Gatten.
Re: HELP !!!Triggered due on sale clause - Posted by shelly
Posted by shelly on May 15, 2006 at 11:03:19:
when i got a phone call they requested to see that i have on file with them a letter from the previous owners they had given me permission to get info from the loan.they had already gotten copies but i guess was covering their bases.i say return their call and if they make you nervous,state,you have another call coming in and will return theirs asap.right after you can come up with a good safe answer.at least it may ease your mind about what they want.i have heard some people just wait them out?its just the waiting part that gets yah.
Re: HELP !!!Triggered due on sale clause - Posted by Kristine-CA
Posted by Kristine-CA on May 15, 2006 at 10:38:10:
Please keep us posted after you talk to them as to what they really
want–and if the due on sale clause is really being exercised.
Even if it is, does it really matter? Don’t you have plenty of time to
finish your sale of the property?
Kristine
Re: HELP !!!Triggered due on sale clause - Posted by lukeNC
Posted by lukeNC on May 15, 2006 at 08:46:26:
probably not…maybe just a system error or something of that sort. call 'em and find out what happened
And they said it would never happen - Posted by Wayne-NC
Posted by Wayne-NC on May 15, 2006 at 08:05:39:
But it is a rather rare event. I want to see how this one plays out. Anyway, if all else fails, try telling the truth from their perspective. You saved this loan for them and should be treated as the savior. What if you owner financed a property that you eventually had to forclose on and all of a sudden and out of the blue you were current again? They just might want to see that you are a qualified payor and not have to forclose again.
Re: HELP !!!Triggered due on sale clause - Posted by dutch
Posted by dutch on May 15, 2006 at 07:54:47:
Talk to them. Do not hide, or lie. Just don’t volunteer any information. It could be as innocent as them wanting to sell you credit life.
Even if they do call the note, ask for some time (ask for a year). Even if they don’t agree, you have time. They have to start the foreclosure process again. Costs them money.
My bet is it’s nothing. TALK TO THEM.
Dutch
OKHomesavers
Re: Relax - Posted by T.J.
Posted by T.J. on May 15, 2006 at 15:31:11:
Stan
thanks for your input, but what do I say once I get them on the phone? Did you explain what you had done? (taken the property sub2) or did you skirt the issue?
Re: HELP !!!Triggered due on sale clause - Posted by Eric (MI)
Posted by Eric (MI) on May 15, 2006 at 17:45:32:
I was going to mention the same thing.
The Due On Sale Clause isn’t a major issue anyway. Even if it is called just finance it in your own name for a bit or get someone you trust to and split any profits with them.
I would never put my neck out there if I can’t deal with the consequences and hurt the original owner.
Re: HELP !!!Triggered due on sale clause - Posted by Joey
Posted by Joey on May 15, 2006 at 11:48:48:
Yep, dutch the know it all. You must have a course coming out soon. You sure have been “helpful” lately.
Re: Relax - Posted by Eric (MI)
Posted by Eric (MI) on May 15, 2006 at 17:49:00:
DO NOT LIE to them. If they ask you, you are just going to have to bite the bullet and tell them. If they find out you are intentionally decieving them I would assume they wouldn’t take kindly to it.
When you call just ask what it is that they wanted to speak to you about and answer any questions truthfully. It really isn’t any harder than that. If they do want to know about taking it sub2 and decide it is in their best interests to call it due you still have options. I would find out what exactly it is that they want before I got all worked up about it.
Re: HELP !!!Triggered due on sale clause - Posted by T.J.
Posted by T.J. on May 15, 2006 at 18:51:02:
Paying for the property is not the problem if I have to I will, I TRY never to bite off more than I can chew. It just make the deal not a great deal if I have to tie my working capitol up this way. I would NEVER want to hurt the origional owner. Thanks for you input I am going to bite the bullet and call them in the morning
Don’e be a jerk - I’ll second that - Posted by Pat
Posted by Pat on May 15, 2006 at 16:29:12:
While Dutch’s replies may be straight and to the point, they are also right-on.
I’d personally love to have him as a mentor - straight shooter - no fluff.
Thanks for all of your posts Dutch.
Don’t be a jerk - Posted by Steve
Posted by Steve on May 15, 2006 at 12:42:35:
Dutchs’ comments are always welcome here. Posts like yours have no place here. Period.
Re: Relax - Posted by ski
Posted by ski on May 15, 2006 at 19:36:28:
Tell them that you are trying to help out the “owner” out of their problem, that is the reason for the payments coming from you. One thing I have learned recently is to send them a money order or bank check, not a check from your account. Your account may send up a red flag. I was called this month for a change of ownership by the secondary lender. Don’t know what triggered it but they started a forced foreclosure. Thankfully, I was able to sell the property before it came due. Good luck. BTW it was wachovia, with whom I have 5 accounts.
Re: HELP !!!Triggered due on sale clause - Posted by dutch
Posted by dutch on May 16, 2006 at 23:11:56:
Don’t forget to let us know how it turned out.