Seller financing vs. Sub 2 and due on sale clause

[Brian Huber]

Hi, I know that the due on sale clause is something to be aware of with Sub2 deals. I also know that people recommend that you do seller financing ONLY on houses owned free and clear.

However, why is that? If people do Sub2's with the possibility (however vague) of DOS clause kicking in, why not do seller financing if there's an existing note?

Would it be because there's a risk that the seller will just pocket the money as opposed to actually paying the mortgage.

One other question: If the seller is paying a mortgage and they have maybe 5-10 years left, is it possible to do a hybrid scenario where you could take it Sub2 for a portion of the sale price and then the rest of the sale price as seller financing?

Any insight would be great. Thanks!