Due on Sale Clause
Hey Folks!
New to the scene here. Just had a lawyer due a warranty deed transfer to my LLC that I have recently created. Just curious, has anyone ever personally had a note due on sale (or in this case due on transfer)? Or has anyone ever heard of the bank actually exercising the Due on Sale clause? I'm just curious what peoples experiences have been. My property manager told me that I should create an LLC for the property and have it transferred in. My lawyer said that he has never seen a note get accelerated, but he did make sure I was aware of this risk. I actually had an off the record discussion with the mortgage banker in which he said that as long as I make current payments on it that there would be no problems. Just looking for others experiences! Kinda scary!
Thanks in advance,
Seth