Re: Questions about subject to… - Posted by Ed Garcia
Posted by Ed Garcia on May 21, 2000 at 10:58:57:
How are you? We’ll as you can see we meet again.
Charity, the last time I answered your post, it was about you and your husband Terry
adopting a child. As you know I worked with you and Terry, and the last time I had
contact with you, Terry had gone to visit with a child. I called you several times
both at your work and at home, to see if you got the child. If you get a chance, drop me
a line to tell me the out come, because I’d really like to know.
Now in response to this post. Jim Piper has given you a great explanation except for
a couple of things that I’d like to add.
I’m currently working with someone from my workshop, where the lender is calling the loan.
It happened so fast, that the only way the lender could have been notified, is because the insurance
company insuring the property, notified them. When the new buyer buys the property and adds
their insurance policy to the loan, the lender is notified. Now you know how the lender finds out.
In this particular case the deed hadn’t even been recorded yet.
In the case of the person I’m working with, The lender responded immediately because it’s a
Commercial loan. I agree with Jim Piper, in most cases, the lender is too large and backed up with
their daily grind to react.
Charity, I’ve said it before and I’ll say it now, other than commercial loans, I would not be
concerned about the DOS. In most cases I find it to be a lenders bluff. As Piper pointed out, it’s
much to costly for the lender to pursue it.
Can you imagine if a lender has X amount of accounts, and finds 103 accounts in violation of the
DOS. Let say those accounts average $100,000 per loan, which in my neck of the woods is way
to low, but lets figure nation wide. That would be $10,300,000. in out standing loans, that are
performing loans.(meaning that they’re current up to date on their payments).
Now the lender says, hey, lets spend a lot of money in our legal department (in many cases, more
money in legal fees, than the account generates in income) to get these performing loans paid off
and lose the revenue. Being in the business, I can tell you that will never happen.
Good luck to you and Terry, and I hope you got that child of your dreams,