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Alan, Other/Just Looking in Buckley, WA

Due on Sale clause problem - bought single family home, closed 3 weeks ago, financed as investment property

Asked by Alan, Buckley, WA Fri Nov 21, 2008

Lender / title co. informed ahead of time by email & verbally that "ownership" will be in name of LLC - (I don't mind being personally on the mortgage). 2 things: 1st title insurance company goofed, issued title policy in my name but fessed up and are doing endorsements so that should be fine. The lender however, has already sold the loan, and the entity that now owns it is saying "hell no" they won't permit transfer into LLC. They think I should refi! original lender had indicated that I could deed it at/after the closing, and never raised any issue / and not raising any issues now. 1st payment due 12/1 (lender will redirect the payment to new lender)

My intent: deed property into LLC, have title policy endorsed, notify original lender, copy the company that bought loan, bring this to a head as soon as possible, thereby forcing them to deal with the issue between them NOW rather than later. Any Suggestions? I don't know how else to deal with

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Dutch is absolutely correct. Connect with a good real estate attorney as soon as possible. Please come back to Trulia when the matter is resolved and let us know the outcome and share as many details as possible.

There are state laws governing real estate and banking, and federal Real Estate Settlement and Procedures Act provisions formulated to protect consumers.

Best wishes for a quick and happy outcome!

Frances Flynn Thorsen
Community Manager
0 votes Thank Flag Link Sat Nov 22, 2008
Hi Alan... Get a good real estate attorney, he's the only one qualified to sort things out for you, the situation has surpassed a REALTORS expertice. Good luck
0 votes Thank Flag Link Fri Nov 21, 2008
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