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Updated 9 months ago on . Most recent reply

Yaakov Gordon's profile image
Yaakov Gordon's profile image
Yaakov Gordon
  • Member since Jun 18, 2024
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Yaakov Gordon's profile image
Yaakov Gordon's profile image
Yaakov Gordon
  • Member since Jun 18, 2024
Connect
Yaakov Gordon
1
Votes |
5
Posts
Creative Real Estate Financing

Keep existing loan

Yaakov Gordon
Posted

If I want to sell my house for 800,000 in California with the existing loan which is at 470,000, but there is a due on sale clause. Is this strategy possible?

Buyer gives 330,000 cash, and takes a 330,000 lein on the property.  He gets an option to buy it for the remaining balance on the mortgage, and pays my mortgage down.

Call it rent to own, or call it a loan with free rent as interest plus option to buy.

Will it trigger due on sale? Will insurance work? Any other reasons why this is impossible?

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