Posted by River City on January 19, 2006 at 06:48:05:
Is this a trick question? If the lender has in their papers that a due on sale clause is probable, then you should always be prepared for just that. Lenders use this clause because in the past people allowed unqualified purchasers to assume their loans and the foreclosure rates went out of control. In addition, the original borrowers on the loan were still responsible for the loan payments. Sometimes they had moved on and had no knowledge of the foreclosures until years after the fact. So, these clauses are in contracts for a reason.
I am like River City…is this some sort of trick question?
Quiet title and Due on Sale are two entirely different and separate concerns.
Quiet title indicates that there is a problem with the title and you are petitioning the courts to clear it up for you.
Due on Sale indicates that the title has transferred WITHOUT the lenders consent and they are enforcing their rights under the deed of trust power of sale.
Re: Due on Sale/quiet title question - Posted by colvegas
Posted by colvegas on January 21, 2006 at 22:29:26:
I would think it is possible since there could be a cloud on title evidently if you need to do a quiet title action in the first place from a lenders standpoint. Doing a sub 2 to begin can invoke a due on sale trigger from the lender but in most cases at least on the sub2 as long as the payments are current you should be ok. I would get that consultation from your attorney since he would be the best resource on the quite title action in your state.
Good luck…