Due-on-sale clause affects credit?

[Kenneth Sok]

Hi all,

I have a potential sub-to deal I'm working on. The seller is aware of how a sub-to works and has concerns about the due-on-sale clause being invoked.

If this were the case, I have a private lender that I work with that can fund the deal.

The seller's biggest concern though is if having a due-on-sale clause invoked will affect his credit. He is very particular about preserving his good credit.

What happens when a due-on-sale clause happens? How long do we have to pay off the loan if the bank calls it? Does it affect his credit, even if we are able to pay off the loan before the bank deadline?

Thanks in advance!