All Forum Posts by: Luke Rentz

 That's exactly how I came across this post - looking for an answer to this question. I've decided to ignore depreciation unless it's a large expense we did this year and account for it in that year only, and potentially try to adjust it a little if it is adding value to the property.

I do understand the simplicity aspect of it though, that's for sure.

Oh right - duh! haha.

And ok, yea that was what I figured - they could choose to still move forward with calling the loan due.

Oh that's really interesting - I didn't expect to hear from someone on this side of the process. Are you a commercial lender I'd assume? Did you guys decide to call it due cause you had concerns about the loan, Or just a generally policy you always call all loans due if title changes hands? In this case, what notified you that this had taken place?

2 additional questions:

1 - If someone responded saying that they are putting the home on the market, would you guys still move forward with the foreclosure process? Or if they have a contract to purchase at the end of January? Is the foreclosure process enough of a hassle you'd consider giving that allowance or extra time?

2 - If they deed it back to the original owner, would you guys reverse calling the loan due?

Thanks for sharing!

Yea that's what I was thinking - we are realtors by trade and invest on the side. My concern with selling is 30 days is a pretty short timeline to try to sell (I'd guess you have an extra 30-60 days before everything goes through)....

If they deed back to the seller, I'm sure there would be a way to convert it to like a master lease with an option to purchase? In your opinion, does that takeaway a lender's recourse or can they still continue to call the loan due? 

Thanks again Mike! Really appreciate your insight -! Good to know there are other options! I looked at your website and will consider reaching out on a specific deal :) Yea there's definitely alot of danger in these types of deals, hopefully the inexperienced don't ruin them for everyone!

Hey Mike - Thanks for commenting back on this. I've read a lot of your stuff and found it to be very helpful thinking through the process. The key is really, liked you mentioned, finding a deal with enough equity that you are not in trouble should the loan be called due (or have money set aside to cover that).

Have you heard or the lender giving you a chance to continue on in the original borrower's stead if you can prove good credit and show payment history? Just thinking that 30 days is not a very long window to get a new loan.

Hey guys,

I was just wondering if has gone through the process of a bank calling a loan due on a subject to closing? I would be really interested to hear how it went, how much time you had to correct or what actions they offered, and how it resolved?

Also, does anyone have a breakdown of disclosures they provide to the seller when purchasing a property this way? i have been making my own list, but would love someone else's to cross reference or even use with their permission. I know it's somewhat unlikely, but I just want to make sure I am dotting my i's and crossing my t's.

Thanks,