What's Going On? Loans Being Called! - Posted by Stacy (AZ)

Real Estate Investing Real Estate Financing
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Posted by ScottS on July 22, 2001 at 18:14:59:

Last time I called a bank I got some hourly wage clerk who I bet couldn’t even spell Land trust.

I’m totally convinced the seller got all wacked out and called somone way up in the banks food chain and screwed everything up.

Getting to know the in’s and out’s of these types of transactions leads me to believe when they get called someone did something stupid.

Myself, I don’t think the sky is going to fall…I going looking for more deals.

Just my opinion.

ScottS

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What’s Going On? Loans Being Called! - Posted by Stacy (AZ)

Posted by Stacy (AZ) on July 20, 2001 at 12:25:12:

If you’ll go to the following link, you’ll see that Countrywide seems to be making an effort to find DOS violations, and calling the loans due. And interest rates are currently LOW. What are they thinking? Is this a trend starting?

http://www.creonline.com/wwwboard/messages/39816.html

Stacy

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Adjust your strategy . . . - Posted by William Bronchick

Posted by William Bronchick on July 22, 2001 at 16:29:26:

If Countrywide has a h***-on about the due on sale, then just stay away from Countrywide loans! I have had several from Countrywide I put in trust and they never asked for the trust agreement. I think Jackie’s case was a fluke because the former owner was dumb enough to tell the lender.

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Re: What’s Going On? Loans Being Called! - Posted by Max

Posted by Max on July 21, 2001 at 12:59:57:

Check out

http://www.landtrust.net/

Pactrust does not violate DOS

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given enough time… - Posted by Anne_ND

Posted by Anne_ND on July 21, 2001 at 11:37:20:

…lenders are going to figure out what investors are doing; there are probably quite a few that know about or lurk on CREOnline, or Bronchick’s site. While it doesn’t make sense to call due a performing loan, they may perceive a long-term benefit in making an example of a few people. Sooner or later the rates will go up and then they’ll have plenty of incentive to call them due when all the very low interest loans being made today start to cost them money.

Just my thoughts on the matter.

Anne

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Some more info! YIKES! - Posted by Jim FL

Posted by Jim FL on July 21, 2001 at 24:26:11:

Stacy,
I was involved in the conversation where Sandy’s friend mentioned the loan being called.
Many of us who are avid “Getters of the deed” asked the very same things being asked here.
This is the situation as we were told;
Buyer purchased the home “Subject to”, using the land trust method.
Has had the home for a year or so, and things are current.
The seller apparently called the lender asking if the loan was still in their name. (Violation of the agreement with the buyer?)
The buyer/investor called the alleged “Bluff” by Countrywide, and they said, “too bad, so sad, we are going to foreclose, and FAST!” The notice of acceleration came in the form of a letter requesting FULL payoff within a short time, like a month. (YIKES!!)
So, the buyer/investor, who now has a tenant/buyer in the home is faced with either having to refi it, or pay it off somehow, since the tenant/buyer in the home cannot get a loan yet.
The tenant/buyer was told about the underlying financing, and the fact that it “May” be called due.
But, the buyer/investor wants to save face with the tenant/buyer,and keep them in the home.
When asked “what?” they were going to do about this, they answered; “Write a check”.

So, apparently the loan is being called because the original seller contacted the mortgage lender company and “Tipped them off”.

Since this was the case, the scenario did not really bother me too much, but hearing now that it is happening to someone else makes me want to look into it more.
I wonder if there were similair circumstances with this one mentioned here?

We shall see.
I am concerned, since I have done some with Countrywide as the lender.
This is the MAIN reason I TRY to MAKE IT CLEAR to sellers, “DO NOT contact the lender and tell them you sold the home, leaving the loan in place!”

And if they do, what would be the recourse anyway?
They have nothing I could go after for violating the agreement. Since most were in bad financial situations to begin with. (the reason they sold to me this way in the first place.)

I’ll be keeping a keen eye on this issue, that is for sure.

What IS Countrywide thinking anyway?
Especially since many of their loans are handled with servicing companies. At least the few I’ve dealt with were. Doesn’t this kind of keep them removed from them?

Could be interesting, and may require us to not deal with homes which have loans from them.
Which is too bad, there seem to be plenty out there.
Then again, this could be an opening for things to change for the better?
Who knows?

If anyone else “Hears” or reads anything on this, PLEASE pass it along.

Take care,
Jim FL

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Re: What’s Going On? Loans Being Called! - Posted by Ronald * Starr

Posted by Ronald * Starr on July 20, 2001 at 15:19:23:

Stazy(AZ)---------------------

When I bought a house subject to, Countywide called the loan due.

When I called the office, the woman said she had a stack of due on sale foreclosures on her desk that was about a foot high.

Good Investing*******Ron Starr***********

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Re: What’s Going On? Loans Being Called! - Posted by JohnBoy

Posted by JohnBoy on July 20, 2001 at 13:33:37:

Could it be because of the fact that it is a VA insured loan, whereby the seller “quit claiming” the property to someone puts the lender at risk of losing the guarantee on the loan if they default later on down the road? Apparantly they have no problem with deeding it back to the seller so my guess is has something to do with guarantee on the loan from VA.

If they call it due now then VA would guarantee the loan. If they let it ride by leaving it alone then maybe the guarantee will be lost by the VA?

In any event, all they need to do is write it up as a contract for deed and deed the property back to the seller to keep them happy. My guess is if this has something to do with the VA guaranteeing the loan they will foreclose to protect their money.

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Re: What’s Going On? Loans Being Called! - Posted by Mark-NC

Posted by Mark-NC on July 20, 2001 at 13:08:53:

Stacy,
It may be because that property in the post changed hands via Quit claim deed. I would imagine if was deeded into a trust and they did the land trust dance to avoid showing transfer, it probably wouldn’t have been called.

Mark

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Re: What’s Going On? Loans Being Called! - Posted by David Alexander

Posted by David Alexander on July 20, 2001 at 13:04:08:

I’d say call there bluff…

then on the otherhand they start calling them, between bad publicity, and getting alot of houses back we should be able to pick up some bargains.

David Alexander

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These institutions… - Posted by David Alexander

Posted by David Alexander on July 22, 2001 at 21:48:59:

are big places… It seems (to me at least) it would be hard for the seller to even call and get the right person who would lead to an action of calling a loan due and that would even consider it unless the payments weren’t current.

David Alexander

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You’re right Bill… and there’s - Posted by BillG

Posted by BillG on July 22, 2001 at 17:38:06:

You’re right Bill… and there’s more to than story.

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Re: What’s Going On? Loans Being Called! - Posted by Joe

Posted by Joe on July 22, 2001 at 01:29:19:

Not sure if I missed something for this posting but here goes my question:

Upon calling a loan, due to the lender knowing the property has been sold, what happens to the money that has already been exchanged, the monthly option money as well?

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Re: What’s Going On? Loans Being Called! - Posted by Joe M

Posted by Joe M on July 21, 2001 at 18:09:22:

“Pactrust does not violate DOS”

According to the authors. However, the DOS issue with Pactrust has not been tested in court.

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Re: Some more info! YIKES! - Posted by Tayor

Posted by Tayor on July 21, 2001 at 10:44:47:

The thought occurs to me…if things like this happen more often ie. sellers calling to check on loan status to see if its still in their name, it could cause mortgage companies to start examining transfers to trust and to dig deeper to find out who has beneficiary interest.

Just a thought…hope this is just an isolated case and nothing that would snow ball.
Taylor.

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Re: What’s Going On? Loans Being Called! - Posted by David Alexander

Posted by David Alexander on July 20, 2001 at 17:16:29:

What were the circumstances? Was the actual foreclosure procedure gone through? Or did they back off?

I have several loans subject to with countrywide… never had a problem… they just send the statement out every month for the next payment.

David Alexander

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Re: What’s Going On? Loans Being Called! - Posted by Stacy (AZ)

Posted by Stacy (AZ) on July 20, 2001 at 15:54:28:

Hi Ron-

For the Countrywide loan you had called, did you take title in a land trust? If so, how did Countrywide find out the beneficiary of the Land Trust was changed? Also, was it a VA loan?

Stacy

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Re: SandyFL ? - Posted by Stacy (AZ)

Posted by Stacy (AZ) on July 20, 2001 at 13:26:55:

Good point, Mark. I didn’t think of that. But, I wonder if that’s the case for Sandy’s friend, who is also getting a loan called by Countrywide.

Do you know what’s up with your friend, Sandy?

Stacy

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Re: What’s Going On? Loans Being Called! - Posted by Stacy (AZ)

Posted by Stacy (AZ) on July 20, 2001 at 13:29:32:

Leave it to you to see the positive side, David. Good point.

Stacy

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Re: These institutions… - Posted by William Bronchick

Posted by William Bronchick on July 23, 2001 at 11:10:23:

Exactly . . . I can’t even get a payoff amt on my OWN f****ing loan!