Need some opinions here

[Householder]

I just got a house signed over to me. The guy was in financial trouble and just walked away. He owes 40K on the house but had his original appraisal from purchase 5 years ago at 75K. I jumped on it. I did forget about the Due on Sale clause in his mortgage. Will they call it due? I don't believe I'll be able to refinance, my credit needs repair. If I make timely payments, will they care? Will they make me qualify? Should I sell it ASAP? Thanks for your time.

[kimesha]

i'm not  a pro but i'm sure any one else will answer the same. banks probably won't call a loan due if the paytments are being made on time. did you stress to the seller to not do anything that might cause the bank to raise an eyebrow? for instance, if they attempted to buy another house iTHINK" this might cause some concern. i would not worry. just make on time payments

[StJake316]

Kimesha is right. The DoS clause is generally just a way for the bank to cover their *asset*. If you're making payments on time, they will generally not worry too much about it. (Think of it from their perspective...do they care that they are getting their money on time, or are they concerned with *whom* they get that money from?) If you're really uptight about it, you could just send a brief note to them stating that you will be servicing the account from now on - that should take care of any concern that may arise.

As far as the original owner buying another property, it will probably not even raise eyebrows that s/he is buying another one if they provide the bank with a signed lease showing the property in question is generating an income for them. They will qualifiy for a slightly lower loan (from my experience) but they should be able to get another house without undue stress.

Success in 2005.
Jake

[TnJkelsey]

 :-[ okay everyone back up please! How did you even get into the position to buy the home from the person who is in preforclosure? what is the scripting to the owner from the seller? how do you get a person to turn over their house? Thanks from Oregon. ???

[mesha]

find a really desperate person before the other investors get to them