All Forum Posts by: Jeremy Namen

Bill
Im liking what you are saying so far..and their ability to control my sales is what concerns me. The kicker is that my new promissory note (350k), under the collateral section, addresses a single DOT (Obligation 350k) on the 3 new properties but it also addresses another DOT (100k of which has been paid). It was paid in this new loan with the equity in the 3 new houses. My hud statement for the $350k loan notes 100k towards paying off this property. I guess my concern is that with the futures clauses they are able to hold DOTs as security for other debts even if the debt to a security has been paid in full.

Ill add that my total obligation to the bank is $350k. I feel like if they wanted to use the old DOT as well then the new DOT should have an obligation of $250k. Im assuming they re correct and able to do this but i just want to make sure bc I am thinking of selling the house and could really use the 100k to work with.

Ill try and reword its confusing I know. The old 100k note was paid and the original note has been returned to me. the new note is for 3 different properties is $350k. and the new deed of trust is for 350k. is the bank able to hold my old DOT until my current loan is paid? Should they have put this in the new DOT?

If I executed a Promissory note for $350k and concurrently a Deed of Trust that secures 3 properties up to $350k and if this is the total obligation owed to a lender, can the lender still hold a previously executed Deed of Trust of $100k for additional security?

1. The promissory note for the $100k DOT has been satisfied and returned to me
2. The DOTs are Future Advance and Obligations DOTS
3. The new Promissory note references the old DOT as security
4. The new DOT does not mention the property as security
5. The values of the 3 properties listed on the new DOT, according to the lenders appraisals, equal $350k.

In other words, Should the lender, if it intended on using this additional property as security, have just eliminated the old 100k DOT and additionally placed that property on the new DOT?

I appreciate that advice Bill! Thank You

Im sure there are more than just layman on this site Don. But if you like, send me a hundred bucks and i will share with you why I ask questions on this site before i seek counsel..

And one more thing, the borrower isnt trying to get out of his loan or responsibilities, but is, as any professional would do, getting his ducks in a row before he discusses his next deal with the bank.

Bill im not sure what you meant by your FHA comment. Are you saying because i shared partial facts about FHA requirements that I couldnt be ignorant to any other aspect of real estate lending. By no means am i trying to prove myself to be ignorant but that would be a very weak assumption. I may be confused on what you were getting at, but anyway..I apologize for the way i asked the original question. I should of asked, would it be considered predatory for a commercial bank LO to require a borrower to take on more debt than he/she was seeking as a requirement to secure a purchase of the borrowers principal residence? And if the facts were as follows:
-The borrowers principal residence was secured by a Deed of Trust with the same lender and a sales contract was in effect between the owner and the person seeking to borrow for the price of the current note.
-The note was crossed with 2 other properties.
-The current owner had several properties with the Lender and was always late and behind on taxes.
-The lender communicated that the new borrower would have to assume the debt of 2 more properties (not the crossed props)at 80%of their appraised value and also get the owner current on payments to the lender and taxes, approx 25k.
-The lender was able to get an appraisal on one of the props for 2xs the value it had just 2 years ago (same appraiser)in order for the LTV to make sense (values havent changed that much)
-The lender instructed the seller to take a seller carry note for 56k with no questioning of how it will be paid
-The borrower had recently asked the lender for a 10k line of credit and was told that 10k wasnt worth the paperwork of trying to get the borrower approved to the loan committee
-The lender also required the borrower to roll in his or her 2 other investment property loans which were not yet due.
-In the end instead of a 60k loan the borrower had a 340k and the borrower stated he wasnt comfortable with the loan beforehand but stated he had hoped that the bank would see his act as a favor upon the bank and lender responded with "lets wait about 6 months for the smoke to clear and we will see about getting you a line of credit"
-The blanket loan balloons in just a year.
-There were recent accusations of fraud from the bank to the LO and the LO is no longer working there.
Im probably missing a few things from this story but its merely hypothetical so try not to read too much into it.....
Do regulations of other agencies supersede commercial regulations when a principal residence is involved? Regardless of anything else.
Before anyone gets off topic the sellers breach is known.

Thank you Wayne, but I was not a straw buyer in this scenario.. Holy #$@^... Its very difficult to get a relavant answer around here. I approached the bank to purchase my property and my property only. i was told that in order for me to take control of my property that i needed to take the loan outlined in my question...

Im really just curious.. does predatory lending pertain to commercial loans to single member LLCs involving the purchase of a principal residence that is also crossed collateralized with 4 other rental properties which balloon in one year?