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I Need Help Plzzz With Due On Saleclause & Acceleration Clause Plzzz

zSaint profile photo
  • Tuesday, December 16, 2003 @ 01:57 AM EST
  • 6 Comments

Hi,

I am looking to buy a pre forlsure soon and this is how I intend to do the deal:
-Pay the arrears to stop the forcl.
-Q Claim the deed to me.
-Put the house on the market to sell.
-Give the owner a % of equity opon the sale.

Now the concern I have is the Due on Sale clause & the Acceleration Clause.

Since the ownership has changed .. the bank can excercise either.

Anyway to get around this? Any other methods?

Your help is greatly appreciated.

Thank you.

Comments(6)

  • no photo
    MrMike16th December, 2003

    Zsaint,

    Welcome to the forum.

    I have PMed you but you have chosen not to respond

    Why in the world would you come to a new forum and make this as your first post?

    http://www.thecreativeinvestor.com/modules.php?op=modload&name=Forum&file=viewtopic&topic=18111&forum=18


    Feel free to email me or PM me.

    Mike
    [ Edited by MrMike on Date 12/16/2003 ]

  • no photo
    nlsecor16th December, 2003

    This is def a legal question, and I am no Liar..I mean lawyer. Perhaps I am a little on the wild side, but I got 2 solutions.
    1. Do what you are going to do, you probably will not get the loan called (my experiences), and if you do, you are selling it any ways. tell them what you are doing (after they call the loan, not before), and simply sell it.
    2. If you are the very careful type, (scardycat), you can slip the property into a title holding trust. It appears to the lender that the property has simply been put into a trust by the original owner. I have not done this yet, but am going to do it for all future deals, because there are some tax benefits in cali. In your case, I'd just transfer and sell. Please see signature for my disclaimer.
    [addsig]

  • no photo
    nlsecor16th December, 2003

    I forgot one last thing...Don't piss off the moderators



    [addsig]

  • no photo
    zSaint16th December, 2003

    Thx nlsecor,

    I am willing to take risks as long as I know what they are. I guess I just wante d to know if they would call the loan due meant 30 days or 3 days. 30 days will give me enough time to flip it. But since it would be my first deal I am not familiar with the mortgage side.

    I have thought of Q claiming the deed to me and leaving it with an escrow company. Then it gets recorded say 30 days later. Of course the risk with that is someone could come and slap another lien against the house. But I guess every action has a certain risk associated with it.

    Thanks.

  • no photo
    zSaint16th December, 2003

    I have done a few land trusts but not on this kinda deal. But it does sound like a very good idea in this case.

  • no photo
    hibby7616th December, 2003

    easy

    have the seller move the property into a land trust (using your trustee), and make you the beneficiary of the trust at close.

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