Subject to - am I paranoid, or ....?
Every time I read about the strategy of assuming a non-assumable mortgage alarms go off in my head. I have read the whole philosophy that banks would rather have a paying customer than foreclose. And this little voice whispers in my head "for now. They are just biding their time". What happens when the combination of appreciation and higher interest rates combine to make it profitable to call in those loans? Does that bank president who you (you the generic investor) made look bad during the recent past by stealing properties for pennies on the dollar have any incentive to cut you a break? Or does he pursue the profit with a vengeance and put the screws to you? Bankers don't do things to protect us, they are protecting their profits. Those due on sale clauses were put there for a reason, so that low interest loans would not be perpetuated by a sale. And now interest rates are starting to rise, and probably will continue to rise. Will banks continue to ignore sales? Forever, or just for a little longer?
Yes, I am on the cautious side, but am I missing something or is this strategy just the replacement for no money down and gamble the wad?