Due on Sale - SubTo Insurance?

[Mike Smith]

Hello.

New to this forum. My partner and I did some wholesaling years ago but got out of the market when it tanked.

Recently became aware of Pace Morby and his "SubTo" approach to real estate.

On a BiggerPockets podcast, he mentions "Due on Sale" insurance. I have now called a dozen title companies, but no one is familiar with it.

Does anyone have a resource?

Thanks in advance!

[Ryan Halford]

Quote from @Ryan Halford:

I don't remember they name of the company or the guy who was being interviewed on bigger pockets podcast, but it was a company that insures the sub to deal and if the loan gets called they will basically replace the loan with same terms i.e. they will pay off the loan and make a new loan to you with same terms. Maybe search through the Podcasts for it if no one here can come up with it. If you do find it please post it here and tag me.

Found it. Equity Assurance is the name of the company. Now I have no experience with them and I can't attest to their legitimacy, but here is info I found. 

Overview

Equity Assurance, LLC was founded with the real estate Investor in mind. As real estate investors there is a great deal of opportunity in "subject too" and/or "wrap" transactions. However, currently the "subject too" and/or "wrap" transaction is always subject to the existing mortgage company exercising their legal rights to foreclose on the subject property based on the "Due On Sale Clause" which is contained in all mortgages and/or deeds of trust on real property. Equity Assurance, LLC has the ability to provide coverage in the event that the existing unsatisfied mortgage that is to remain in place after the transaction has completed decides to exercise their rights under the aforementioned "Due On Sale Clause".

In the event, that the “Due On Sale Clause” foreclosure is initiated by the existing mortgage company and/or bank, Equity Assurance, LLC will interject into the foreclosure transaction to cure the “Due On Sale Clause” for the investor by assuring that the covered loan and terms will remain in place.

Phone 8178744372