All Forum Posts by: Bryan Hartlen

To fend off foreclosure and to continue to control the underlying asset from a junior position. I would never bother paying a lien that's junior to mine, but I would, and I have advanced loans and taxes senior in position to my lien. In some states, HOA's receive super-lien treatment and move into 1st position ahead of debt liens.

Not much inventory for sale for 5-25 units, I see two deals on CoStar around 6 Cap

 If you search "assumption of mortgage form" you'll find various templets, some free others at a cost.

….

I would approach to buyer about refinancing you out of the property.  Make them buy the note for 100% of face value, much better than selling for a discount latter.

@Bryan Hartlen -

I wouldn't modify the loan or allow an assumption by the new property titleholder. 

The ultimate guarantor on any loan secured by real estate is the property. Your lien is attached to the property until it's released no matter who is on title. 

So long as you're covered by equity, you're in good position. You could exercise your due on sale provision at any time you wish.

The payor needs to keep property taxes and HOA assessments (if applicable) current, and name you as loss payee on the hazard policy. Also, enforce the requirement which should be in your loan docs stating they provide current proof of insurance.

First, if you do decide to not call the Note due, I, as some of the other posters noted, would require the Grantee to assume and guarantee the debt.  I would also contact the title agent that issued the title policy and ask for an endorsement to change the effective date of the policy through the recording of assumption agreement.  

....

Do you know what the buyer paid for the property?  Does it seem reasonable?  Does it appear they have any skin in the game or did they buy it for the cost of recording the deed?  You wrote the Note is currently eight months behind, personally, I'd have started the foreclosure by now.  I've seen far to many subject to buyers never make a payment but collect rent while the property is being foreclosed on since they don't have any liability for the debt.  Just a few concerns I'd have.

Your rights under your mortgage have not changed at all.  you are in a better position now than you were since the former owner was in default. It wouldn't concern me in the least.

I am sure the title company had your mortgage as an exception to the title insurance.

You  might look at your loan documents. Is this considered a default? If it is, is there a default interest rate that the loan changes too? You can potentially use this situation as a negotiating tool, or simply be happy you now have a performing note.