Okay, I bought a small sub2 course, in the course the author sujests sending the lender a letter basicly saying that we have purchased the property sub2 and intend to make every payment on time or early untill the home sells, that we will contact the lender for payoff info from time to time, and have a POA ect. Just wondering what everyones thoughts are on this. I would like to be honest from the get go with the lender, but don’t you think this will trigger the due on sale clause? Has anyone ever tried this techneque before?
i doubt it will trigger the DOSC, but so can transfering title to you or your company name, or simply not paying which I don’t reccommend. However, either way you take a chance. however, if the note is performing, why would a lender call it due?
Thanks tony
The author said hes used this many times. Do you think just the transfer of title would trigger the DOSC? I figured, besides not paying, the insurance change would do it.
Like Tony said, if the note is performing there is no reason for them to call it due. That being said, it is best to be prepared just incase something crazy does happen. Just because history says they usually do not enforce the DOSC does not mean the can’t or won’t.
Sub to risky but also very rewarding.
sure, a change in insurance can call attention to change of ownership, and can make the lender invoke the DOSC. it’s a chance you take.