HUD release of old DT - Posted by RCP

Real Estate Investing Real Estate Law
1

Posted by RCP on September 05, 2004 at 07:33:55:

Well, the loan looks like it has not been paid. AS I understand a second DT was put on the house to protect HUDs interest. The note says that if the house is sold to a non 235 qualifying owner, the note is due for the lesser of two calculations, one being 1/2 of the net appreciation(appraisal minus original purchase /2)or $5500.00 (interest plus calc). So now I need to find the purchase price and who does the new appraisal.

The house is in an area that has not seen much, if any appreciation, so I mat be ok.

Please advise if I am missing something.

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HUD release of old DT - Posted by RCP

Posted by RCP on September 03, 2004 at 08:13:22:

I am trying to purchase property that has an old (1985) HUD 235 DT attached. The property was sold in 1992 to a lady that assumed the loan. She has since refinanced. My closing attorney says this needs to be cleared or I won’t have clear title. He doesn’t know what the best course of action. Should I take papers to local HUD office and ask them to release? …or…What do I do?

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Re: HUD release of old DT - Posted by John Merchant

Posted by John Merchant on September 03, 2004 at 10:01:34:

You need a release of deed of trust from whoever owns it currently, or owned it when it was paid off.

HUD office? Good luck with any info there! Those are gummint employees who know where the coffee pot is, and that may be all they know.

Actually the title co. could tell you what, who, the last recorded owner of the DT was, and that’s who should issue the release.

I chased one of these all over the country before finding and getting release from its last owner.