Pre-foreclosure's sale

**Codythebest** · 06-05-2007, 03:11 PM

I'm on my way to buy a pre-foreclosure property at about 25% below FMV (subject to the mortage).
I have a concern though. The property insurance has been canceled due to lack of payment.
I know that if I do a new insurance on my name, that's a red flag for the lender right there.
Can I reinstate the actual insurance under previous owner and put my name with them?
We are talking about 4 unpaid payments. Do you think the lender has an eye on the 'due on sale' clause?

**OregonLO** · 06-08-2007, 07:42 AM

that is a good question Cody that I've never been approached with. If you'd be so kind and to shoot me an email if you get the correct answer to that?

**Codythebest** · 06-11-2007, 07:22 PM

For those who are interested, I have figured out a way to avoid the due on sale. Owner called the bank saying she wants to rent the home so she'll be able to pay the mortgage. I, as new owner, will pay the "rent", which is the mortgage with a "lease" of 12 months. Chances are the bank will not check a due on sale since they know they get their money for the next 12 month, instead of foreclose...
Also, insurance co agrees to reinstate policy. The solution was just to ask them

Another acquisition with instant equity of about $30K-$35K...

**jaschoenly** · 08-23-2007, 06:38 AM

Nice work. I would say that i most cases they re willing to work with people if like you said you said you just ask. The fact is the really just want to receive their payment so if that is occurring it is unlikely that you can run into problems.

**InRealEstateSolutions.com** · 08-23-2007, 10:04 PM

Has anyone had the lender call their loan due because of a title change? I've talked to a few investors here that do Subject To, take the deed and the bank never complains... not even a peep. One even said that she tells the bank what she's doing and has never had one called....

Are they just getting lucky? Or does the bank not really care as long as they're getting paid? Especially right now that there are relatively so many foreclosures happening.....

We use Land Trusts but many around here just Quit Claim them to their personal name or LLC

**jaschoenly** · 08-24-2007, 04:10 AM

I have done many, but if you think about why would they call it due? They are in the business of lending money and as long as they are receiving payments why would they care? Just my 2 cents.

Best Wishes,

Josh Schoenly

**InRealEstateSolutions.com** · 08-24-2007, 07:06 AM

I guess this was my point:

If banks don't really care, don't spend to much time, money and effort trying to be overly creative to hide things from the bank. The fact is ownership did change and the bank *can* call the loan due. It doesn't mean they *will*.

And if the lender finds out you've been hiding, sneaking, and "bending" the truth, will they be more willing to call the loan? Maybe it depends on whether or not the decision maker has had his morning cup of coffee (or Mona Vie!) and how bad his commute was to work that day.