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Disclosure and the Due on Sale Clause

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How do you explain this to a seller?

terateam, I'll repeat my post from earlier in this thread:

"I don't make a point of telling a homeowner that a lease or a lease purchase may cause the lender to call in the loan. Not to be deceitful, but because I have never seen it happen personally. It is such a remote possibility in my experience that I don't consider it when doing a deal. I also have my doubts as to whether or not a lender has the legal right to do so as a matter of routine procedure. Unless a mortgage has written into the agreement that leasing the property will make the loan due and payable immediately, I can't see why the DOS will kick in.

In the real world, (and that is where I sometimes like to reside ), if a lender is receiving their payment each month they are not interested in upsetting the cash cow that is that loan with those interest payments.

On the other hand, if a homeowner specifically asked me about the DOS, my reply would be to tell them to read the agreement and terms of their mortgage."

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