Mortgage Companies Perspective Of Subject 2
I purchased a house subject 2 in Oct. 03. I had every intent of paying off the first, so I asked a lot of questions at the mortgage company. Basically the foreclosure department had no problems with me owning the property as long as payments were made on time. I started asking around about the insurance(was a bank issued policay and cost $2400) and finally got connected to someone that did care that I now owned the property. I'll be paying it off on Friday, but here is a direct quote from the bank, "Due to the illegal assumption of the deed of trust for the above referenced mortgage note by (me), the entire balance of said mortgage note is due and payable in full, principal, interest and any other fees and cost."
The key word here is "illegal". It seems all that use this procedure say it is not illegal, but the mortgage company says otherwise. As far as I know, the only action they would take is to begin the foreclosure process again, never threatened to sue me or send me to jail. So is this truly illegal??
jllaco,
I had to read your post a few times let me get this straight.
You talked to the foreclosure department and they said as long as the payments are being made they don't care. This I can understand as it is true.
Sounds like the mortgage company wants the house and is threatening you with some out of context verbage hoping you will shutter in your boots and give them the house back.
I wonder what clerk trying to make a name for themselves wrote "illegal assumption" not in the criminal sense or not that doing it Subject To was illegal, they are saying they have the option to call the loan, which they did, only a little late in this case.
Payoff the loan and go about your business. The DOS police are busy at the doughnut shop.
John $Cash$ Locke[ Edited by JohnLocke on Date 12/10/2003 ]
It is not illegal in the sense that you have violated a law. Exercising the Due On Sale clause is their remedy. John Locke, hopefully, will contribute his wisdom and respond to your post.
edmeyer,
Thank you, the key words "illegal assumption" what assumption this investor never assumed the loan.
Never ceases to amaze me how things are taken out of context.
John $Cash$ Locke
Hi, John
I wonder if jllaco actually got a payoff demand letter or if it was a clerk exercising gums.
You must be in or near Florida by now.
I hope you and your wife have a nice holiday.
Regards,
Ed
Yes, I did receive a letter. I actually received two copies( one certified mail) and the original home owner received a copy also.
I do not think this will deter my use of SUbject 2 purchases, just thought I'd let you know what the letter said.
What mortgage company is this? Did you tell them you were taking it subject to? I just don't understand how they found out about the sub to or why they care. You are bringing a none proforming to a proforming mortgage.
Sire
It is Suntrust. The rate on the loan was 7.5%. Now they take my money and lend it out at 6%. Guess it doesn't need to make sense to us!