Posted by John Merchant on October 20, 2007 at 15:44:31:
Sounds to me like your friend was a cowboy and didn’t get his REC protected with title and payments going to bank, etc. and now he’s about to find out what fate awaits the wild bronc rider…as he hits the cold hard ground.
I’ve seen several REC buyers get bumped like this because they trusted their seller to do what S was supposed to be doing (making his bank payments, etc.), and then when S didn’t, that REC buyer couldn’t save his own positions.
When a buyer buys on a REC he should make sure he’s got the right to make the bank payments, which are current when he buys, and he leaves the seller no room to screw up with delinquent payments on Seller’s purchase loan, taxes, insurance, etc.