scott(pa) 0 Report post Posted January 31, 2003 Has anyone encountered any problems with the due on sale clause when doing a L/P? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 31, 2003 Not once, Scott, in about 150 deals. Anyone? Share this post Link to post Share on other sites
scott(pa) 0 Report post Posted January 31, 2003 Well Michael, I put that post up there because it seems just as newbies get started they find out about the due on sale clause. Lets get this matter out of the way. I know several investors, and now including Michaels experience. All together between everyone that I talk to there is probably a total of 1000 deals. Out of those deals everyone will tell you the same thing. Dont worry about it! Its not going to happen. Why would a bank want to foreclose on a loan in good standing? They dont! The due on sale clause was created to protect the rising interest rates. This was years ago and the sitution has been taken care of. The clause still exists but is unheard of being used when a loan is in good standing. Think about it, it does not make since to call a loan in good standing. Now that we have that barrier out of the way, Lets go do some deals. Scott(pa) Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 31, 2003 Agreed, Scott. Share this post Link to post Share on other sites
Dave T 0 Report post Posted February 6, 2003 I asked my local lender if they would call a loan due -- upon transfer of occupancy rights -- if I sold on a contract for deed (essentially wrapping the first mortgage). They said (1) how would we ever find out, and, (2) if the underlying mortgage loan is current, why would we care? Just my $0.01. Used to be $0.02, but you know what they say about a penny saved! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted February 6, 2003 I asked my local lender if they would call a loan due -- upon transfer of occupancy rights -- if I sold on a contract for deed (essentially wrapping the first mortgage). They said (1) how would we ever find out, and, (2) if the underlying mortgage loan is current, why would we care? Just my $0.01. Used to be $0.02, but you know what they say about a penny saved!Dave, your lender sounds like he is living in the real world. Share this post Link to post Share on other sites
