Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago on . Most recent reply

User Stats

1,946
Posts
429
Votes
Daria B.
  • Rental Property Investor
  • Gainesville, FL
429
Votes |
1,946
Posts

Due On Sale - Estate Planning

Daria B.
  • Rental Property Investor
  • Gainesville, FL
Posted

In my estate planning I, like many, am looking at the "due on sale" clause (if) within the 2 mortgages for my rentals.

I've yet to find these terms or similar definition within the mortgage documents and am still rereading them because mortgage docs have so much verbiage it can easily be missed.

With that said, I am looking at land trusting my mortgaged properties and setting up an LLC for the land trusts. May not be phasing this correctly but I have spoken with people that do asset protection and understand what direction I am going.

The question I have relates to (I guess refi-ing) getting a portfolio loan for the existing mortgages to start off the recorded properties into the land trust.

Yes, I realize that I can just do the land trust and deed the properties into the land trust name, BUT, here in lies the due on sale that I understand "can" occur due to the appearance of ownership.

Is it possible to get a portfolio loan without w2 wages? 

The only reason I'm thinking on these terms (and yes it's spending more money to refi when it shouldn't be necessary since there is no monetary benefit) is to find a way around the due on sale.

Thanks

Most Popular Reply

User Stats

23,418
Posts
13,509
Votes
Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,509
Votes |
23,418
Posts
Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

The due on sale clause is in the Note, not the mtg. There is also misinterpretation of the due on sale verses "estate planning" exemption.  The Garr St Germain act specifically exempts a transfer for estate planning purposes from the due on sale clause.  But, the act specifically excludes transfers into an "inter vivos living trust".....not a land trust.

Loading replies...