Subject To Deal - Success in alerting bank of your Sub2 deal?

[Rob White]

Most creative financing strategies for Subject to / Sub2 deals, have a workaround of avoiding the bank from knowing the sale has occurred, to avoid the due on sale clause. There seem to be very effective ways of doing this, but regardless, it is still the main risk (albeit very small) and reason some people avoid doing subject to deals, and also one of the main hurdles in selling the idea to a seller. I also understand that you can give them certain assurances where the seller will receive the house back if the buyer stops paying (a deed in lieu of foreclosure).

I have read a few BP posts from 2014-2016 of people simply letting the bank know prior to the Sub 2 sale, that they were going to takeover the payments, and the loan was not called due. Does anyone have recent experience with letting the bank know up front of the subject to sale via letter or phone call before the sale occurs? This method would obviously be less stress for all parties in the long run, assuming the bank ok'ed it. Again, I know the threat of due on sale is currently extremely low, but maybe the frequency of the due on sale clause being called may become more frequent now that interest rates have risen considerably, and subject to deals are becoming more common. 

For this reason, Im looking to see if anyone has a method they are using currently to alert the bank of their own Subject to purchases. If so: 

How are you alerting the bank?

Larger or smaller banks more accepting of Subject to?

How long to get a reply from the bank?

How often does the bank say no?

Any information would be a great help!

- Rob

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Quote from @Rob White:

Most creative financing strategies for Subject to / Sub2 deals, have a workaround of avoiding the bank from knowing the sale has occurred, to avoid the due on sale clause.

Any information would be a great help!

- Rob

I have escrow file the new deed for a variety of reasons. That has not caused any call of a due on sale. Small banks are far likelier to be concerned about it. 

I'm not hiding anything for a lot of reasons and I wouldn't go out of my way to "alert" the bank. The fact that the new deed has been filed is deemed notice.