If a investor had to forclose

2 Replies

Maybe I heard it wrong but let's so you had 10 conventional mortgages and had to forclose on 2 is the rule then that you forclose on them all?

Originally posted by @Derek Dombeck :

No unless you had all of the notes and mortgages cross collateralized 

although most mortgages will have a section that says that one default defaults them all.. IE invokes penalty interest . but that is a good question about whether you can actually foreclose them without a better nexus then just the standard one defaults they all default language.

I know some national operators out there that this nipped them in the behind pretty hard.. they had no clue.  IE did not read the fine print.