Comments on: Enforcing the due on sale clause? http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/enforcing-the-due-on-sale-clause Learn how to stop mortgage foreclosure Thu, 17 May 2012 13:25:35 +0000 http://wordpress.org/?v=2.5.1 By: Real Trav http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/enforcing-the-due-on-sale-clause#comment-1446 Real Trav Mon, 15 Mar 2010 17:53:59 +0000 http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/enforcing-the-due-on-sale-clause#comment-1446 Hmmm, I think what you are proposing is that you get title but the loan stays in the seller's name. In practice, here in Missouri at least, it's rare for the lender to try to enforce this clause. I am not a lawyer, but I understand that this clause -sometimes you will hear refernce to an "acceleration clause"- is a contractual right and not a law so to transfer title secured by a "due on sale" mortgage is not illegal. If the lender later discovers the transfer he/she may at his/her option call the loan due and payable. I haven't noticed any change in the attitude of the banks at all, it seems they would rather have the timely payments than the hassle of foreclosure. If the payments are missed at any later stage, it's the seller's credit rating that is affected! To protect all involved there is another strategy you can consider and other documents that could form part of your deal (The "Trust assignment" ) but see your attorney first. And check on your State law.<br><b>References : </b><br>http://www.foreclosuredatabank.com/law.php Hmmm, I think what you are proposing is that you get title but the loan stays in the seller’s name.
In practice, here in Missouri at least, it’s rare for the lender to try to enforce this clause. I am not a lawyer, but I understand that this clause -sometimes you will hear refernce to an "acceleration clause"- is a contractual right and not a law so to transfer title secured by a "due on sale" mortgage is not illegal.
If the lender later discovers the transfer he/she may at his/her option call the loan due and payable.

I haven’t noticed any change in the attitude of the banks at all, it seems they would rather have the timely payments than the hassle of foreclosure.
If the payments are missed at any later stage, it’s the seller’s credit rating that is affected!
To protect all involved there is another strategy you can consider and other documents that could form part of your deal (The "Trust assignment" ) but see your attorney first. And check on your State law.
References :
http://www.foreclosuredatabank.com/law.php

]]> By: Christopher N http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/enforcing-the-due-on-sale-clause#comment-1445 Christopher N Mon, 15 Mar 2010 17:17:59 +0000 http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/enforcing-the-due-on-sale-clause#comment-1445 The 100% accurate answer to that question is definately....I don't know. Usually, if the interest rate is higher on the existing loan than on the new loan...they will not enforce it. However, it does happen and I know a person to whom it happened to. He explained that the old loan was 8 percent and a new one would only get the bank 6 (something) but they were insistant. As long as the payments are made on time...they may not even realize it. I would think with the high number of foreclosures, you may be able to convince them otherwise but it's just impossible to say. Every bank is different. I would suggest that you do the subject to ONLY IF you have a way to get cash quick...(personal money, hard money, etc...) so you are covered. I think you have about 45-60 days to come up with the funds but I suggest you do your own due diligence.<br><b>References : </b><br>real estate investor The 100% accurate answer to that question is definately….I don’t know.

Usually, if the interest rate is higher on the existing loan than on the new loan…they will not enforce it. However, it does happen and I know a person to whom it happened to. He explained that the old loan was 8 percent and a new one would only get the bank 6 (something) but they were insistant.

As long as the payments are made on time…they may not even realize it.

I would think with the high number of foreclosures, you may be able to convince them otherwise but it’s just impossible to say. Every bank is different.

I would suggest that you do the subject to ONLY IF you have a way to get cash quick…(personal money, hard money, etc…) so you are covered. I think you have about 45-60 days to come up with the funds but I suggest you do your own due diligence.
References :
real estate investor

]]> By: hirebookkeeper http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/enforcing-the-due-on-sale-clause#comment-1444 hirebookkeeper Mon, 15 Mar 2010 17:04:59 +0000 http://www.stopping-home-foreclosure.com/blog/stop-foreclosure-sale/enforcing-the-due-on-sale-clause#comment-1444 If they find out it is family, it will not be considered an arm's length transaction. Lenders are tightening up, not loosening their terms.<br><b>References : </b><br> If they find out it is family, it will not be considered an arm’s length transaction. Lenders are tightening up, not loosening their terms.
References :

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