Seller Finance Question
Not sure where to post this question. I have seen many comments on this site about not really having to worry about the due on sale clause. Especially with lease options and sub2 deals. My question is if I still owe on a 1st mortgage and I seller finance a property with a contract for deed, since the deed stays in my name and does not transfer, would this send up any flags to my mortgage lender and cause the DOS?
I ask because I am almost done rehabbing a property and can't decide if I will l/o it or just sell it and carry the financing myself, and would like to hear opinions about seller financing in this manner.
Thanks
Scott
^^^^^
No, you should be safe as long as you the deed stays in your name. You should get a real estate attorney to structure a contract for you if you are considering holding the note, just to be on the safe side.
The chances of getting the Due on sale clause envoked is about as good as getting struck by lighting, twice, as long as the payments are being made.
Have a good one,
Andrew
Thank You. That gives me one more option to add to my flexibility in selling. Cool.
Scott
What Andrew said.
ditto....kenmax