Wholesaler · Burlington, CT · Member since 2013 · 9 posts · 2 votes
If anyone has sold a property on a land contract when there is a mortgage already in place, I need your help to advise how you avoided a "due on sale mortgage clause." I ask because my tenant is interested in buying my property on a land contract with $10k down. The property is in Livonia, Michigan . Thanks!!
Real Estate Investor · Kalamazoo, MI · Member since 2015 · 46 posts · 5 votes
10y
Write up land contract, get notarized, both have copies, do not file at register of deeds. Have taxes and insurance added to monthly payment and you make those payments yourself.
Specialist · Grand Rapids, MI · Member since 2016 · 1k+ posts · 611 votes
10y
Reach out to bank and see if you can get it in writing if they allow it. It is rare they will use the due on sale clause but working in banking I have seen it a few times and its sloppy.
Developer · Portland, OR · Member since 2014 · 732 posts · 490 votes
10y
How long is the land contract for? The deed doesn't transfer until the contract has been paid in full so it doesn't seem like there is much risk of due on sale clause.