(This is part 2 of our Subject-To Real Estate Investing Course. Enjoy!)
Creative real estate investors have come to know and hate the “Due-On-Sale Clause”. With good reason, too: It gave mortgage lenders the legal right to be unreasonable in being able to extend their rights beyond what would have been possible without the aid of some foolish legislation known as the Garn-St. Germain Depository Institutions Act of 1982.
The Due-On-Sale Clause is one of the primary elements of risk when performing Subject-To real estate investment transactions. Frankly, that’s true not just of Subject-To but of any creative buying strategy.
Fortunately, that risk can be mitigated quite significantly. But you definitely need to understand the Due-On-Sale clause, so here’s a brief video lesson to cover it completely:
I hope that was helpful for you. Some other helpful links are:
- Subject-To 101: The Basics Of Subject-To Investing
- The Garn-St. Germain Depository Institutions Act of 1982
Your questions or comments are welcomed below!
good info
thank you
Clear, concise and great info. Thanks
DUE – SALE – Claus
Yeah right it really makes me mad ( NOT )
I would love to see a bank call me in on a due on sale again just like Mid-ohio did years ago in Texas by the time they did it all they got back was what was on the deed Lot 5 Block 12 of what ever subdivision. Oh Yeah and a big hole in the ground with no house on it.