Assistant Property Manager · Newport, RI · Member since 2015 · 10 posts · 0 votes
I'm looking at a 3 unit turnkey that I am going to try to acquire through low/no money down options. I would like to try to assume the mortgage if the seller agrees and if the bank allows it. How can I find out if the loan has a due on sale clause? I've also been thinking about a lease option.
I know there are other no/low money down options, I would love to hear everyone's thoughts.
Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
11y
All mortgages since 1982 or so have a due on sale clause
I wouldn't try to get the mortgage company to get their blessing about you doing anything with someone else's mortgage
The tools that you use in creative financing are
Subject to (loans taken subject to the existing mortgage)
Lease option or lease purchase
Wraparound mortgage
seller carried second mortgage
Contract for sale or contract for deed or land contract
For free and clear houses, installment sales
@Blake Dowe if you live in Maine and are doing creative financing in Maine, find a real estate attorney that understands these terms and has experience with these terms
I use all these contracts on daily basis and I'm blessed to have a talented real estate contract attorney