Thanks SK.
More background as to why I need to protect my $50k already invested and avoid being frozen out by FC on the 1st TD.
With rent of $3000/mo, a 6 5/8 % loan (good for investment properties), I can make money owning this building. I have 5 of exactly the same building next door, three of them since new in 2003, and two acquired deed in lieu of foreclosure recently.
The latter two I also had 2d TDs on, and had to pay off the owner, in FC on the 1st and 2d TDs, $10k to go away. He cooperated, turned over all the paperwork, I made up all the late fees, payments, FC costs to date, and beat the Trustee’s Sale date. So the lender (WaMu) knows me, has copies of the settlement papers, will soon get a copy of the Deed, etc. But they won’t officially put me on the loan. They seem to be saying, just keep those payments coming in and we’ll be quiet. Some call this Extend and Pretend. I call it unnerving. On the next building I’d like to be more up front and legal with them and actually be on the loan, and do it all before FC. On the other two buildings they were hard to communicate with because of privacy rules, etc., but when I finally got to the right people they got real friendly and kept asking when I would mail in the total arrearages.
