The "punishment", and its really a penalty not a punishment, is to have the loan called due.Perhaps James' lawyer is saying that by violating the due on sale clause you have committed fraud.

And do you think it would be too late to seek legal help reagring the situation with the loan officer?

The disqualified persons and prohibited transactions rules still apply, and the penalties are very stiff is you blow it.

Hello,I am new, but learning a lot, and my last post was just like this one - seeking opinions on a possible deal.In my area I found an REO on the MLS for $70K, while other houses that are comparable on paper are listed for nearly $100K and selling.

Transfers using quitclaim deeds are often listed as nominal value in an attempt to avoid taxes, but if the authority chose to, they could likely follow up on such transfers and impose taxes and statutory penalties.

(if the deal contiunes I'll get a true contractor estimate)Numbers-$50775 payoff-$9772 in arrears (like 7 or 8 months plus penalties I am guessing??)

Once you have reached 10 posts, check out our Seeking Mentors . . . .

Kelly,Put in any clause you want that is legal in your state.If the party signing for the legal responsibility is not able to fund the penalty guess who will be next in line?

I lived in Houston in the housing debacle of the mid-late eighties and there were few penalties for people walking away.

The title company wants all the heirs to sign a release before they issue the title policy.The Language in the contract is fairly strong, although there are no dollar penalties for the seller.