"due on sale"

General Real Estate Investing
1

i am not 100% clear on the due on sale clause. i figure when the owner sells the property to you the bank gets their money at closing. now if a seller deeded their property to you in the form of a warrenty deed for sufficient amount of “moving fees” can this trigger the banks “due on sale” clause?

2

Kimesha,

Glad to meet you.

I think Bill Bronchick’s article on the DOS pretty well explains it.

http://www.reiclub.com/articles/no-due-on-sale-jail

I personally have never used a trust, but then again, never had the DOS envoked on any Subject To deal I have ever done.

John $Cash$ Locke