Subject 2/ Sub2

[Nicholas Creahan]

Hey all, I need some advice. I bought a small multi family about a year and a half ago. I am wanting to sell to buy closer to home. I have a buyer wanting to buy the property subject to my existing loan. I understand the concept and I talked to a lawyer for advice. It seems the two options are: 

-Land trust

-title/ deed transfer

With the title transfer, I fear of the Due on Sale Clause. With the land trust, it’s not as inciting to the investor since it doesn’t necessarily give him ownership, which I understand his view point. Has anyone had any mortgage company exercise the due on sale clause or am I overreacting? It just seems as a seller I definitely take more of the risk of selling in the chance that the buyer defaults. Thanks for any information.