Replies to This Discussion

Permalink Reply by Angela Alfe on January 10, 2012 at 12:26pm

Do they want to collect rent?  Or are they asking the seller if they are getting rent and if so not paying the mortgage?  Need more info.

Permalink Reply by Joy Baker on January 10, 2012 at 1:44pm

The 1 to 4 Family or Multi Family Rider that is part of many mortgage documents includes an agreement which states that, in the event of nonpayment,  the mortgagee (the bank) has a right to collect rental receipts to make up for the defaulted amounts.

Permalink Reply by Craig Bartels on January 10, 2012 at 4:15pm

This is indeed valid.  All of my commercial buildings(commercial notes) I own has a clause that states they can ask a judge for a receivership if I am behind in payments. The receiver then takes over collecting rents and dispersing of funds for utilities, etc.    I've not seen it happen as quick as you describe, but would depend on the bank.  Have him/her look at the loan docs they signed, I'm sure it's in there.

Permalink Reply by Steven Pawera on January 11, 2012 at 12:19am

We have a Winner!  Joy has the right answer and that puts her on the board with 200 points!

Actually if you look at the docs, many are actually called 'Deed and Trust and Assignment of Rents'.  You default, they have the right to the rents.  First time I've heard of them actually invoking that right.  I don't remember the CAR lawyer's answer when I asked this question, but if I were the tenant, and BAC were getting my rents, I think I'd make a strong argument they are my defacto landlord and assume all responsibilities.

Permalink Reply by Joy Baker on January 11, 2012 at 12:51am

Thank you.  I'll take FHFA and Bulk REO Sales for 400, please....:)

Permalink Reply by Steven Pawera on January 11, 2012 at 1:22am

I actually said years ago all the intricacies of real estate would make a good version of trivial pursuit.  Little did I know the game exists: it's called the license exam.  :)

Actually I'm going through my 45 hour renewal now and I AM STEAMED at the crap they teach:

"an alternative measure for a property owner to avoid tax liability for discharge-of-indebtedness is:

a) avoid a short sale

b) exercise the put option

c) force the lender to foreclose

d) all of the above.

The correct answer (according to First Tuesday) is 'd'.  And it is not just a jacked up answer key, but their materials confirm it.  They are trying to teach realtors to advise clients NOT to do short sales.

TECHNICALLY, not doing a short sale will avoid tax liability for discharge of indebtedness, but PRACTICALLY, the homeowner WILL GET A 1009 for ABANDONMENT of debt.

No asterisk in the text anywhere regarding the mortgage debt relief act, or insolvency and form 982, or that the shortage will likely be smaller through a short sale than after a trustee's sale.

It's enough to make me scream.

and besides, I have important stuff to do:

BAC Equator message 'offer doc rejected.  reason: other'.  Probably no relevance in the observation that message always seems to come from someone with a distinctly Indian sounding name, and often at hours that suggest they are at work on the other side of the world.

Probably no point in trying to explain to BAC that Congress passed the electronic signature act over 10 years ago, or that HAFA explicitly permits electronic signatures..

Do you remember why we chose this profession?  :)

Permalink Reply by Joy Baker on January 11, 2012 at 1:35am

What kind of misleading heap of garbage are they teaching out there?

With regard to Equator and Rejections for the oh so enlightening reason of "Other".  I had an issue a while back where my third party authorization kept getting rejected for "Other".  No matter how many times I sent a message asking WHAT the problem was I did not receive a response.  I finally contacted someone "on the inside" who looked into it for me.  Turns out they were rejecting because they also wanted a third party authorization from the other borrower.  Never mind that I had provided a Death Certificate for her.  I sent a message to the brainiacs looking for that authorization saying, "I am a woman of many talents but necromancy is not one of them...."

Permalink Reply by Steven Pawera on January 11, 2012 at 2:11am

Well I guess this will be a good day after all: I learned a new word!

And prior to looking it up, I really thought you were making this one up.  :)

Permalink Reply by Joy Baker on January 14, 2012 at 1:07am

And, I'm sure it's one that will come in handy on a regular basis.

Permalink Reply by Thom Colby 888-391-5245 on February 20, 2012 at 4:08pm

Joy is absolutely correct.  Also buried in that Deed of Trust is language allowing the lender to protect the property - aka board it up, secure it, insure it, etc.