All Forum Posts by: Tom Gimer

@Chris Seveney I think we both know this company can't do anything to keep the covered loan and terms in place. Once the lender invokes the due on sale nobody is going to "interject into the foreclosure transaction" and prevent a foreclosure without a payoff. They state that they have never been unsuccessful in this process and that's probably true because they have yet to process a "claim" in a decade due to market conditions. That's over. Once the cascade of demands coming their way materializes the website will likely go fully offline.

@Tysson Dykes They (perhaps both seller and title company) are concerned you won't be able to payoff or refinance the existing financing if the lender accelerates the balance due... and then the lender will foreclose. It's a valid concern as the seller would not be in title and effectively powerless unless they had grounds to pursue their own foreclosure. With a contract for deed the title would remain in the seller's name until some date in the future, and the due on sale clause would not be implicated.

I would be happy to upload one to FilePlace but there doesn't seem to be a way to do that currently.

So essentially the product has morphed from due on sale "insurance" to due on sale "assurance" to due on sale "we'll have your back". 

@Basit Siddiqi In the fact pattern the mortgage is paid off and the seller finances the balance. Regardless, you can certainly acquire a property subject to  existing financing and obtain title insurance. The open liens would be special exceptions on the owners policy.

@Rance Jones You are entitled to a copy of the title commitment. Figure out the title issue yourself by reviewing the Requirements section and determine the likelihood of the issue being timely resolved. Review the Exceptions to figure out anything title is suggesting will not be cleared prior to or at settlement.

A defaulted contract for deed / land installment contract needs to be foreclosed like a mortgage... hence the estimate. It's a cloud on title that needs to be cleared. If the borrower is still in possession of the property I doubt there is an exception that applies here.

PACER: 

Possible language

FOR VALUE RECEIVED, I, [Borrower name] (hereinafter known as “Borrower”), promise to pay to the order of [Lender name, address] (hereinafter known as “Lender”) the sum of [X and 00/100 Dollars] ($[]), with interest from the date hereof until paid at the rate of [X percent ([]%)] per annum on the unpaid balance. Said principal and interest is payable as follows: Commencing on [date], and continuing on the [1st] day of each and every month thereafter [principal and interest payments of [$]], with the entire remaining unpaid balance of principal and interest, if not sooner paid, being due and payable in full on or before [maturity date].

Add same maturity date to mortgage.

Monthly payment amount reflects the applicable amortization schedule. Good luck.

We had 2 off-market BK sales within the past month. If there are no objections filed the court will grant the trustee's motion to sell (which would likely indicate that the trustee feels the purchase price is reasonable BUT additional offers would be considered while the motion was pending).