I was told by one RE guru that buying sub2 is a fraud against the bank. And the state of Oregon is cracking down on the people who do that. Is this true?
hell no. They do however have the right to call the loan due if they choose. Remember though that the people that own the house can do whatever they want with it. THEN, on the other side of that the bank has the right to accelerate the loan and ask for their $$. BUT, with interest rates so low and the foreclosure rate so high, they don't (unless you stop paying). How would a bank justify to it's investors that they have foreclosed on X number of properties, and that they also accelarated a perfectly performing loan.
I'm not stressing over the DOS clause until interest rates go through the roof.
Sam
If it is a fruad they may want to check a HUD-1 form under the Subject to heading. Why would that be a heading for an illegal action? Don't worry about the things you hear, and unless I get aletter from the Att. Gen. or I read a letter to someone I deal with, don't go believing it!
Best to you
Sire
breaking a clause is not illegal and it says they "may" call the loan due. It is just a small risk in this business. Plus, of course a realtor would say that because your taking business away from them.
I read on a site that was critical of Sub2's that when he asked the Gov't agency in charge of monitoring such accelerations for Fannie Mae that not a SINGLE loan had been called due! When he asked why they were not enforcing the rules by calling loans that were "technically" illeagal, he was told they didn't have time to deal with such things and unless he had specific knowledge of a probelm loan that he really needs to get a life and stop making trouble for people! WOW. So what's the BIG FEAR all about?
Read this article http://www.legalwiz.com/dueonsale.htm
Then look into other guru's. No one method is always best!
[ Edited by jeff12002 on Date 04/28/2004 ]
hell no. They do however have the right to call the loan due if they choose. Remember though that the people that own the house can do whatever they want with it. THEN, on the other side of that the bank has the right to accelerate the loan and ask for their $$. BUT, with interest rates so low and the foreclosure rate so high, they don't (unless you stop paying). How would a bank justify to it's investors that they have foreclosed on X number of properties, and that they also accelarated a perfectly performing loan.
I'm not stressing over the DOS clause until interest rates go through the roof.
Sam
If it is a fruad they may want to check a HUD-1 form under the Subject to heading. Why would that be a heading for an illegal action? Don't worry about the things you hear, and unless I get aletter from the Att. Gen. or I read a letter to someone I deal with, don't go believing it!
Best to you
Sire
breaking a clause is not illegal and it says they "may" call the loan due. It is just a small risk in this business. Plus, of course a realtor would say that because your taking business away from them.
I read on a site that was critical of Sub2's that when he asked the Gov't agency in charge of monitoring such accelerations for Fannie Mae that not a SINGLE loan had been called due! When he asked why they were not enforcing the rules by calling loans that were "technically" illeagal, he was told they didn't have time to deal with such things and unless he had specific knowledge of a probelm loan that he really needs to get a life and stop making trouble for people! WOW. So what's the BIG FEAR all about?