Equity Sharing, Does It Trigger The DOSC?
If i have a homeowner that is facing foreclosure and was served with a notice by the lender. Would me doing a equity share deal trigger the do on sale clause? Because if i do a equity share then i would have my name or my company name added to the deed. Will adding my name to the deed cause the lender to accelerate the loan? Would like some advice from someone doing this type of deal.
So i am assuming no one knows.
charlotteinvestor,
I speak with the powers to be on the state level in North Carolina on occasion, so I keep up on bill HR 725, which by the way has not passed. If this bill does past then creative investing in North Carolina will cease to exist as we know it.
Here is what could happen with the deal you described, it may all look good up front, however should the homeowner at some point in time decide you were not fair with them and report you to the Attorney General, you will have problem.
I am not going to say this will happen, but for your protection you will need the proper paperwork to consumate this type of a deal done by a professional. Just adding your name to the deed is not the anwer.
John $Cash$ Locke
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