"Due on Sale" clause and interest rates?

[Bienes Raices]

I know that the consensus is that "due on sale" is almost never triggered in the real world.

However if someone locked in at a historically low interest rate today and then deeded the property to an LLC (or some other type of transfer), and then interest rates rose several points over the course of the next few years, is it possible that the banks would start enforcing the DoS clause in order to get out of their (now) unprofitable mortgage obligations?

[Rob Gillespie]

Bienes,

Yes they have that right. When they call you ask them when you should stop making the payments. If they say you cant, explain if they are calling the note due, you must stop. Ask for someone else. No one will ever tell you not to pay, so just keep on payin and I am pretty confident they will move on to the next one.
You can move properties into a trust for estate planning purposes and they can not call the note due, Just an FYI.
:mrgreen: