Posted by Bernice/CA on 2/24/08 10:01pm
Msg #236959

Dead of Trust and Assignment for Rents


Weekend is over and Monday will be here before you know it... have a quick question for you....

Today, I had 2 signings, both were Refi's and HELOC. In the second package for both the DOT read DOT and Assignment for Rents. Is this correct?

Thanks,

Reply by JK/TX on 2/24/08 10:16pm
Msg #236961

Assignment of Rents is for investment property here. Never see it on a primary residence refi.

Reply by JK/TX on 2/24/08 10:24pm
Msg #236962

Re: Dead of Trust and Assignment for Rents.... and....

never see a HELOC on investment property..... here. Home equity must be "home". But, I am in Texas.... last state in the union to allow a home equity loans and it has only been since 1998, I think.

Reply by John_NorCal on 2/24/08 10:30pm
Msg #236964

DOT with an assignment of rents is quite common. Although the house may be a primary residence at the time the loan was consumated, at some point in time it could become a rental. At that time the lender reserves the right to collect any rents payable and apply them to the loan.

Reply by Bernice/CA on 2/24/08 10:40pm
Msg #236966

Both properties are primary residence. Neither had intention of turning it into rental property.

Reply by John_NorCal on 2/24/08 10:44pm
Msg #236967

Doesn't matter what their intentions are at the moment. The lender is concerned about what could happen in the future. In either case this has no effect on the borrowers at this time so they shouldn't be concerned with it.

Reply by JK/TX on 2/24/08 10:50pm
Msg #236969

Yep, we are sooo different here. An AOR is an alert that property is an investment, not primary. There may be a language for rents w/in the body of the DOT for primary but if the doc is titled DOT/AOR or has an AOR rider..... it's investment property

Reply by Bernice/CA on 2/24/08 11:12pm
Msg #236970

Thank you for the clarification....

Reply by BrendaTx on 2/25/08 6:19am
Msg #236995

**Is this correct? **

I wouldn't second guess the lender and/or title company on this.

Reply by Pat/IL on 2/25/08 9:00am
Msg #237007

An apartment building up to 4 units is generally considered residential property, If the owner occupies one of the units as his or her primary residence, the Assignment of Rents applies. Note that I use the word 'generally'. I don't know if this is the right answer for your locale.