Explaining "due on sales clause"?

[Steven Mitchell]

Can someone explain what this means? I'm reading it in on of the BiggerPockets book and not really understanding what "due on sales clause means"

Thanks

Steve

[Account Closed]

It simply means that the loan or promissory note is payable in full on sale of property

[Michael Evans]

It means more than just that.  Technically, it means that if there is a transfer of title from yourself to an entity other than yourself, the mortgage company has the right call the balance of the loan or promissory note due immediately.  Doesn't mean that they will, but they can.  When you transfer title from yourself into a trust, they usually won't question it.  if they do you state it's for estate planning purposes.