All Forum Posts by: Patricio Yrizar

Definitely find a skilled attorney. You mentioned a contract for deed etc. IMO the would be risker than due on sales clause, because the seller could become difficult to deal with later on down the road. You would want to pay the underlying loan directly and not thru the seller. 

Would you be in a position to pay off the mortgage if they called the loan? 

The Due On Sale clause is ALWAYS a possibility. I'd recommend a few things. Find a GREAT attorney familiar with creative financing strategies. They should be able to walk you through the process so you know what you need. 

In my experience, big banks tend to care less. It definitely depends on what stage in foreclosure they're in. If you're seller financing AND doing Sub To, you definitely need a skilled attorney. Every situation is different, but why not just do Sub To, catch them up on their mortgage then continue to make payments and sell it? Are you looking for a long term rental? If so then you need to make sure you have exit strategies for the Due on Sale clause. If the bank calls it due, do you have the money to cover or refinance, or is it in desirable enough condition and location you could sell quickly to another investor or retail buyer? Could you do a quick rehab and then list it?

If you can think ahead and plan for worst case scenarios, then you'll be ready if it happens. Hope this is helpful.