What does everyone think in regards to the due on sale clause in the current market? I’m betting the banks aren’t willing to call anything due that’s performing when so many of their loans aren’t. What are your thoughts?
I agree with that. I think even in the last 2-3 years that has been the case as well. I don’t have an example as proof, but my instinct tells me that you, sir, are correct. 
:bobble
Always a risk but as more and more defaults occur, lenders are going to be too busy and understaffed to deal with DOSCs.
I would think it depend on the lender. I would imagine some did not lend to subprime buyers so they are not affected by the increasing foreclosure rates.
Do you honestly think it’s only the sub-prime market being flooded with foreclosures? Maybe in your area, but not in mine. Michigan’s economy is bad, there are tens of thousands of unemployed auto workers, electricians, plumbers, etc.
Plenty of people that were in great shape are now scrambling to find a solution, and then get OUT of the state and start over. (I have a great example of one in Redford that has a nice house, always made good money, took care of the house, etc. Got laid off, went from a couple months to over a year, and he and his wife bailed. They moved out of state, and are starting over. I’m trying to do a short sale on their house but if its not successful they’re already gone, and starting over. It’s basically about saving their credit, to them, at this point.
My point is that most lenders will still have their hands full with the loans they do already have non-performing, and they will have to NOT take your money to be able to call the loan due. Honestly, I really wouldn’t worry about it. Concentrate on finding good deals, and IF it does ever happen, deal with it then. DOS could be one of my least worries in today’s climate.