Posted by tampasteph on January 12, 2007 at 20:50:03:
It’s easiest to go online and set it up so the payment is automatically deducted from your bank account. The seller will be able to give you all of the necessary info. to do this. Then you don’t have to worry about payment booklets, checks, etc.
Steph
Sub 2 triggering due on sale. - Posted by talbot
Posted by talbot on January 12, 2007 at 19:03:31:
Everybody says that lenders will “never” call the loan due on a sub 2. Is there anybody that has a had a sub 2 trigger due on sale and if it did is there anything you could have done differently to avoid the trigger.
Sorry, I meant “Talbot” - Posted by J. Christopher
Posted by J. Christopher on January 13, 2007 at 19:19:23:
nt
Re: Sub 2 triggering due on sale. - Posted by stan
Posted by stan on January 12, 2007 at 19:14:12:
There was a guru promoting a complicated trust who was generating a few fictitous tales. Turned out they had no substance.
I’ve done a couple of dozen Sub2s with no problem. A guy in our club has done 120+ with no problem. There is a guru who has done over 500 with no problem.
Having said that, there is one thing that will trigger the DOS. That is being over 30 days late with the payments.
Otherwise, it’s a non-issue in today’s market.
An example … - Posted by J. Christopher
Posted by J. Christopher on January 13, 2007 at 19:17:47:
Hi Stan,
Believe me, the lenders don’t care who’s paying as long as the payments are being made. On one of my properties, the monthly statement arrived late in the mail (1 day before the due date). So, I drove to the bank, walked up to the teller with my statement (in the seller’s name) and my check (obviously in my name). The teller looked at both items, deposited my check and said “Have a nice day.”
No problems at all. So, don’t sweat it.
J. Christopher
Re: Sub 2 triggering due on sale. - Posted by Dave T
Posted by Dave T on January 12, 2007 at 22:53:43:
Sub 2 always “triggers” the due on sale/transfer clause. Whether the lender will choose to exercise his option to call the loan due is another story. I have always believed it to be unlikely if the loan is current.
question - Posted by Seargant
Posted by Seargant on January 12, 2007 at 19:32:28:
Do you make the payment yourself to the lender. If so, do you use a casiers check or do you write a personal check to the lender?
The Seargant
Re: Sub 2 triggering due on sale. - Posted by Aaron
Posted by Aaron on January 12, 2007 at 19:29:46:
Wow those facts give me more confidence. I was always afraid too of what I would do if it did cause the due on sale. Thanks for those numbers.
Re: question - Posted by stan
Posted by stan on January 12, 2007 at 19:52:39:
Yes. Just a personal check.
The bank president or DOS patrol is not waiting there, processing the checks, just waiting for a violation. No one really cares “who”, it’s “if” – the payments are made.
In fact, the major lenders all use auto envelope readers and check scanners, so no human actually processes your check – or cares.
Re: question - Posted by Seargant
Posted by Seargant on January 12, 2007 at 20:18:19:
Sorry to ask so many simple questions. Thank you for your reply though. Do you put the sellers loan account number on your check. (How do they know which account the check is being applied too.) My personal mortage has a payment booklet and my previous mortgage co. sent me a letter each month with a tear off slip for the amount. Does the lender keep sending these items to the seller? Thanks for your help.