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Private Lending & Conventional Mortgage Advice

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Heidi C.
  • Hutto, TX
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Due on Sale Clause?

Heidi C.
  • Hutto, TX
Posted Sep 22 2015, 17:44

I purchased a home for sale by owner 5.5 years ago with a wrap around mortgage. I received a notice of foreclosure from the bank who has the original loan because of a due on sale clause. I am current on payments. The legal team for Wells Fargo refuses to speak with me despite my sending them the deed of trust, Warranty Deed with Vendor's Lien, and Real Estate Loan. He will not give them authorization to speak to me.

The man I purchased the home from is saying if I sign the deed back over to him this will all go away and added he states should he be able to get refinanced at another institution he will sign the deed back over to me....that is a lot to ask from a single mom who has worked her butt off to provide this home and school district for my kids. What can I do? I am in Texas. what are my options? Thank you

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Dawn Anastasi
Pro Member
  • Rental Property Investor
  • Milwaukee, WI
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Dawn Anastasi
Pro Member
  • Rental Property Investor
  • Milwaukee, WI
Replied Sep 22 2015, 18:00

@Heidi C. have you spoken to an attorney yet?

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Heidi C.
  • Hutto, TX
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Heidi C.
  • Hutto, TX
Replied Sep 22 2015, 18:09

No, I only tried to speak with Wells Fargo Attorneys and they refused to give me any information.

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Marvin McTaw
  • Rental Property Investor
  • Atlanta, GA
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Marvin McTaw
  • Rental Property Investor
  • Atlanta, GA
Replied Sep 22 2015, 18:36

@Heidi C. - get the current owner to sign an authorization to release information form for you. This will allow the bank to speak with you. I also highly suggest you get a real estate attorney to help you out. You might be able to convince the seller to refinance or to sell the wrap around note to pay off the mortgage if you're current on it and the numbers work. 

Good luck with getting this situation resolved!!!