Questions on "Subject To" Transfer

[Will Reed]

I have a few questions regarding subject to transfers.  
How likely is the Due on Sale Clause to be triggered? Some things make it seem like that never happens or extremely rare. And if it is triggered  what happens? 

[Jay Hinrichs]

Quote from @Roger Paschal:

Quote from @Stacie Smith

Equity Assurance, LLC, offers insurance for the due on sale clause.

Thank you Stacie for the plug for Equity Assurance, in over 4 years of offering our services we have never had a foreclosure because of the Due on Sale Clause.

Also with almost 20 years of doing Subject 2 deals myself never have I had a bank follow thru with a foreclosure threat, yes they have called and I am sure they will continue to call in the future, that is their job is to make sure all is correct and the investors job to make sure all their ducks are in a row.

With Equity Assurance, our goal is to make sure the investor is educated and the seller has all the correct information and disclosure on how this process works.

We are now offering some online courses and documents to make sure the Investor is doing this process correctly.

We are also slowly changing our name from Equity Assurance to Subject2Institute.com to eliminate some of the confusion, we are not an official Insurance Policy we offer peace of mind for the seller if the investor needs this to make the sale. 

Our job once again is to make sure the investor and seller are educated and all the correct disclosures are in place.

Roger D. Paschal

CEO Subject2Institute.com / Equity Assurance

I have had two loans called since 1979 when we started doing these. And thats hundreds of transactions.  Commercial loans will have the most risk and those held by a community bank.
the majority of what folks are trying to buy sub too have loans that were sold in the secondary market and are with servicing companies not with banks.. Make the payments keep the tax's current and insurance current and things go just fine..  The real risk to sub too that I have seen is not to the buyers of these.. Its to the seller when people are promoting how to buy sub too and you dont need any money or credit this brings in those that are totally under capitalized  to even own real estate. And they end up in trouble and defaulting on the sellers mortgage and causing the seller all sorts of problems..  For the investor who has money and has the ability to refinance no question or pay the loan off in full with cash.. thats a different story and risk profile for the seller.  But thats not how companies are marketing this stuff you see it on their websites.. NO money  NO credit NO experience how can that possibly go wrong.. :)  Just pay me a few bucks and we will teach you all the techniques ..  Sellers need the same coaching so they dont end up with unqualified dreamers buying their properties and risking their credit and financial situation.