Can I Do A Sub 2 Without Notifying The Lender?

Arseknow profile photo

I have an opportunity to acquire a SFR because owner wants out of his mortgage but I've talked to two attorneys and a lender friend of mine and they all say that to transfer ownership the lender has to be notified. Is this true? I realize it could trigger the DOS clause but is there a way around this? Thanks in advance.

Comments(5)

  • JimFL11th January, 2005

    Arseknow,
    Nope, they are wrong.
    There is no law that states the lender must be notified.
    Sounds like you've read here a bit, because you touched on the due on sale clause issue.
    There is a way to take title to property, leaving existing financing in place, in fact, a few ways.
    That is what those of us who buy subject to the existing financing do all the time.

    Check out Johns course, and some older posts here for the how to, and details.
    I think John might even have some articles, as well as others here that outline the process more.

    Remember, never ask someone who has never done something, if it can be done.......chances are, they'll say 'no'.
    We here are not from that crowd.

    Good luck,
    Jim FL
    [addsig]

  • mikemike121323rd January, 2005

    Check this out.
    I am interested in hearing everyone's opinion on this.
    http://www.law.cornell.edu/uscode/html/uscode12/usc_sec_12_00001701---j003-.html

  • InActive_Account23rd January, 2005

    Yeah you might want to do some searches on this topic because its been discussed many times. I do like the legal site though, pretty cool.

  • JohnLocke23rd January, 2005

    Mike,

    Glad to meet you.

    You should take a look at Bill Bronchick Esq. opinion as it pretty well sums it up.

    http://www.legalwiz.com/dueonsale.htm

    John $Cash$ Locke

  • ryand24th January, 2005

    John, That was one of the best articles i have ever read. Thank you for listing it
    Ryan

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