Keep existing loan

[Yaakov Gordon]

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?

[Yaakov Gordon]

Of course, he gets to live in the house and is responsible for maintenance. Future sale price is set, regardless of market.