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Updated almost 11 years ago on . Most recent reply

User Stats

888
Posts
309
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Carlos Flores
  • Commercial Real Estate Lender / Syndicator
  • Dallas, TX
309
Votes |
888
Posts

Assuming MF Fannie Mae loan. Lender wants certain rights waived

Carlos Flores
  • Commercial Real Estate Lender / Syndicator
  • Dallas, TX
Posted

I am a principal in a 100+ unit multifamily deal where we're assuming a Fannie Mae Non-Recourse loan. Two days before closing the lender's attorney wants us to sign docs waiving any benefit of discharge under Chapter 43 of the Texas Civil Practice and Remedies code and waive all rights to contest deficiency under Texas Property Code 51.003, 51.004 and 51.005. The latter basically says we can't contest the value if the property is sold at auction, and offset any deficiency if the property is proved to be worth more under the law.

I realize this is NR, and it's not like we're going to violate any of the bad boy carveouts, I just don't like waiving rights afforded by law or otherwise.

Has anyone that assumed a FNMA NR MF loan ever waived similar rights?

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