Posted by William Bronchick on April 02, 2002 at 16:10:25:
ZDawg, if you read my materials carefully you would see that the assignment of beneficial interest DOES trigger the due on sale, so the Garn Act is not applicable. This is one of those rare cases where the seller opens his big mouth and blows it for you (trust or no trust, Countrywide could pursue the issue).
I would contact the lender and ask for an extension of time. Tell them you sold it on CFD and need time to refi or assume the note.
Countrywide calls Sub-2 Note! Help! - Posted by ZDawg
Posted by ZDawg on April 01, 2002 at 20:14:20:
Thanks in advance for any suggestions you may have.
Rec’d certified notice that Countrywide is requiring their note be paid in full in 30 days due to borrower not being beneficiary of Trust. Seller (borrower) apparantly got pressure from ex-wife to get her name off note since he didn’t even own the property anymore. He called lender & told them that he had sold and wants off the note. This is the 3rd notice I’ve rec’d from Countrywide. The first about 120 days ago wanted me to assume note. I responded in writing by saying that I was the trustee only and was simply following the beneficiary’s directions about setting the trust up. Reminded them of all the information I sent them upon starting the Trust (B.Bronchick’s paperwork of course)declaring that under the Garn-St.Germain Act couldn’t accerlerate the Note. 2nd notice was received about 90 days ago saying they were accelerating the Note. I didn’t respond, just kept making the payments. Now I get this 3rd certified notice.
What are my options?
- keep paying payments and hope they don’t foreclose in 30 days
- Hire attorney to respond to them regarding Garn-St.Germain Act.
- Contact Seller & inform him of his problem & have him call Lender and tell them to get off back?
By the way, I did sell the property (contract for deed) in August 2001.
Thank you for your suggestions!