I have never bought a house “subject to” a loan before and I heard that it is now becoming unwise to purchase that way. I heard banks will definitely find out about the purchase and almost always call the loan due. I really like the idea of buying “subject to” an existing loan but I would really like to learn more about it.
I would love to here any information, ideas or strategies that anyone has on the subject.
-Thanks.
Whoever told you that does not know what he/she is talking about.
Just where did you hear this from? It is definitely not true. The Due on Sale clause is rarely acted upon by lenders. If the loan is performing, they’re a happy lot.
I heard this from a mortgage broker that works in my office. I’m guessing she probably doesn’t have any first hand experience involving Sub 2’s. Thanks for setting the facts straight!!
A mortgage broker? That figures! She’s towing the company line. Find me one investor who has done a Sub2 or a lease option correctly, and who can talk from first hand experience that they had a loan called as a result. You’ll have better luck finding Pamela Anderson’s phone number on your pillow in the morning. 
I even had a bank ask me to take over the payments (which was a sub2 transaction) on a home because the lady was renting it out and the renters got her so far behind she couldn’t get caught up. The bank let me catch up the back payments in three different payments. The bank put me in touch with the person and I had her sign the deed over to me and I started making the payments.
BANKS DO NOT CARE AS LONG AS THE PAYMENTS ARE BEING MADE!!!
GOOD LUCK!!!