Posted by JohnBoy on February 17, 2005 at 12:13:18:
When you post questions on the legal forum you need to ask the question in a general nature. Not in a specific manner pertaining to specific problems. The legal pro’s won’t answer legal questions pertaining to specific matters. Only questions asked in a general matter.
You may post this on the main news group as well to see if any others that have had this happen and see what they did to resolve it.
Sending a letter sounds like a good idea. At this point all they can do is accept that or continue to demand the loan be paid.
They may even allow you to take the loan over by signing off on it to be liable for the repayment.
Bought a property 2 years ago “Subject To” in Trust. Value about 85,000, Balance 45,000. Has a interest rate of 9% and we have considered refinancing. Since we have had the property for 2 years payments have never been late and property is in good condition. It might be a FHA loan.
Does anyone have any strategies besides refinancing? You always hear about Due on Sales never being called but here is one.
Re: GMAC calling PERFORMING loan due - Posted by John (OR)
Posted by John (OR) on February 25, 2005 at 05:38:33:
I assume that the deal was set up in a trust but the seller did not retain 10% beneficial interest. If so that eliminates the exception for the DOS.
Collecting ideas is a worth your time.
What do you expect to do if you receive no more ideas? Are you going to refinance? I would expect an improvement in the cash flow so any costs might be paid back out of the improved cash flow.
You might check with GMAC to see if they want to do the refinance. Asking them could trigger a review of your other GMAC deals so think about this.
Re: GMAC calling PERFORMING loan due - Posted by Bill H
Posted by Bill H on February 17, 2005 at 21:45:32:
I susect we will see more and more of this as MERS gets bigger and bigger and the lenders get tighter and tighter.
Ward Hanigan on his board InnoVest's Foreclosure Forum talkes of using “Acceptance by Acquiescence.” Never used it but it is worth a try. Or, go to his board and ask his assistance.
Re: GMAC calling PERFORMING loan due - Posted by JohnBoy
Posted by JohnBoy on February 17, 2005 at 08:56:15:
You can just ignore it and keep making the payments. A lot of times they will just let it go as long as the payments are being made. If they choose to enforce it they will have to file a foreclosure suit if you ignore them and refuse to pay off the loan. If they actually file a foreclosure suit then you will need to refinance or sell it to pay them off before they can successfully foreclose on the property. Depending on the State and their foreclosure laws this could take up to two years. Some States can be as fast as a few months.
I’ve heard that in some juducial foreclosure jurisdictions, judges won’t permit a foreclosure suit to continue if payments are current, due on sale clause notwithstanding. They basically take the stance that as long as payments are made the lienholder hasn’t been harmed i.e. the suit is inequitable.
Thanks Johnboy for the quick response. I neglected to say this but as of today they have not cashed this months check. We make 3 other payments to GMAC and all payments were made at the same time, this is the only one that hasn’t cleared, and the did write us to say they would return all checks untill this problem was resolved.
I don’t like the foreclosure angle because of the additional expense and because there is an underlying borrower involved. I did have a friend once solve this problem by sending a strongly worded letter about How the loan was perfoming and above interest rate. In his case they backed off.
Any ideals would be greatly appreciated. By the way Johnboy I see that your an experieced user of this forum. Do you think I posted this question in the right place?