No. of Recommendations: 1
OK... some further clarifications from the prior posts in this thread;

In my shy-decade in the mortgage biz, I've yet to see a Due-On-Sale clause written to trigger upon change of occupancy. AND, while I don't discount the POSSIBILITY, I can't imagine it's very common in any institutional loan you'll ever see. FURTHER, in today's highly unstable loan portfolio market, banks are bending over backwards to avoid having to book actual foreclosures... so you have to damn near insult their mother AND default for 3-12 months before they tack a notice-of-default on the door.

IP is correct that the servicing company will be alerted when the hazard insurance policy is amended to cover tennant liability (which you would be insane NOT to get,) however, once again, the servicing departments are playing twister among themselves to keep their portfolios from turning over or booking NODs.

Even if it was fraud, that is a criminal offense. Do you really think the state's attorney is going to prosecute something like this?

Happening near you, daily;

TicoHombre's right on, as well.... ALWAYS double check what you read from unsupervised anonymous boards.

Dave Donhoff
National Mortgage Banker/Broker
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