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Icon Mini Profile Oirizarry

Joined: 27 Feb 2009

Posts: 7

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Post Posted: Tue Mar 03, 2009 1:09 pm    Post subject: 1-4 FAMILY RIDER!

What does the term 1-4 Family Rider means?
Icon Mini Profile smithsussane

Joined: 18 Sep 2008

Posts: 12591
Location: Alaska
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Post Posted: Tue Mar 03, 2009 9:03 pm    Post subject:

Hi Oirizarry!

As far as I know, a 1-4 Family Rider usually means that it is a multi-unit property. The concerned property should have more than 1 unit. For example duplex, tri-plex, or four-plex will be marked with 1-4 Family Rider. This can be written as 2-4 Unit Family Rider or 1-4 Family Rider.



Post Posted: Sun Feb 28, 2010 1:00 pm    Post subject: 1-4 family rider

i am going through a proposed modification for a rental house that I am 6 months behind on, Ocwen wants me to sign a 1-4 rider that says they will take the rents paid. they are willing to lower the payments, but I would have to give them the rent. is this right? can they do that? do I have to sign the rider?
Icon Mini Profile jenkin7

Joined: 04 Jun 2007

Posts: 4537
Location: Hawaii
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Post Posted: Sun Feb 28, 2010 11:12 pm    Post subject:

Hi citiboy,

It looks like your mortgage lenders wants to make a deal with you whereby you'll assign the rent to them and in exchange, they'll lower your mortgage payments. However, they can do that only if you want allow them to do so. They cannot force you to accept any such deal. You must consider your situation. If the reduction in the monthly payment is considerable and it can help you save some amount of money, you can assign the rents to them. But before taking such a decision, you must know in details about the modification program like, how lower the payments would be, if the modification would be permanent, etc.


Post Posted: Fri Mar 05, 2010 9:39 am    Post subject: Answer

1-4 Rider is a document that attaches to the Deed of Trust and allows the lender to collect rents on the property in the case of default (if you moved out and moved tenants in, they will go to the tenant and have rent paid to them instead of you). It also makes fixtures of the property part of the security agreement (water heaters etc), usually deletes the requirement to occupy the property unless otherwise agreed in writing, and prohibits the placing of additional subordinate liens on the property (second or third mortgages etc)
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