Mortgage Clauses - Posted by Bob


#1

Posted by Bob on November 18, 1998 at 22:46:35:

Thanks for the help. And thanks to all who made suggestions. The seller took back 78K on a 84K condo at 8.5%, interest only, 15 year balloon. I got all of the clauses in that you folks suggested, including this default clause and the clause that gives me right of first refusal on selling the paper to someone else.

Now all I have to do is find a good tenant :frowning:

Bob


#2

Mortgage Clauses - Posted by Bob

Posted by Bob on November 18, 1998 at 12:55:41:

Sorry if this is posted twice. . .

Bud Branstetter posted this a couple of weeks back regarding clauses a buyer should try to get in a private mortgage:

“The note and mortgage shall provide for a thirty day grace period in the event of default, and any reason for default may be cured during that period,”

I think I understand the first part (you can be thirty days late, no penalty) but what does "any reason for the default may be cured’ mean?

Anyone?

Thanks,

Bob


#3

Re: Mortgage Clauses - Posted by Rob FL

Posted by Rob FL on November 18, 1998 at 21:24:59:

There are usually other ways to default besides not making your mtg payment.

Examples are not paying the taxes or insurance. Letting the property get run down (i.e. “waste”). Just to name a few.


#4

Re: Mortgage Clauses - Posted by Floyd Brumfield

Posted by Floyd Brumfield on November 18, 1998 at 14:26:14:

It dosen`t matter the reason for the default. Payor has right to bring current. (cure)