Does SC law prohibit lenders from demanding payment in full...

[Melissa Searing]

Hi!

So I have a question for a South Carolina attorney. I am interested in doing a deal in Charleston via seller financing, but the borrower still owes some money on the house. 

The mortgage doc states that if the property is sold or transferred "without the lender's written consent, the lender may require immediate payment in full of all sums secured by this Security Instrument." And it goes on to say, "However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law."

So my question is, does South Carolina law prohibit lenders from demanding payment in full upon transfer of a property with funds still owed? I would imagine not and I am sure it is wishful thinking, but it's worth asking. :) 

If SC does allow lenders to demand full payment, is it worth trying to get their written consent?

Thanks!

[Charlie Fitzgerald]

It's typical that lenders will not call a note due on transfer as long as the payments continue to be made .and the note is performing.  Contacting the lender to ask for their blessing is not advisable, unless the note clearly indicates it is an assumable loan, which is very doubtful.  I suggest you speak with a RE Attorney so they can advise you on this.  I also would encourage the seller to do the same.  "Subject to" transactions are great for both parties, but both parties need to be fully aware of the intricacies of the process.