• How many of you have actually seen a lender call the loan due because of the "due on sale" clause? If it does happen, what are your options besides just paying off the balance?How much time do they give you?I just watched a video where an investor notifies the bank of the deed transfer via certified mail, instead of hiding and hoping they don't notice.Thoughts?? Thank you in advance!! • If it does happen, what are your options besides just paying off the balance? • How much time do they give you? • I just watched a video where an investor notifies the bank of the deed transfer via certified mail, instead of hiding and hoping they don't notice. I have an opportunity to do a "subject to" deal in CT. Based on what I know, the numbers make sense, deal wise. What I am looking to find out is (I know this subject has been talked about before and I have read other forum posts and watched the YouTube videos): • How many of you have actually seen a lender call the loan due because of the "due on sale" clause? If it does happen, what are your options besides just paying off the balance?How much time do they give you?I just watched a video where an investor notifies the bank of the deed transfer via certified mail, instead of hiding and hoping they don't notice.Thoughts?? Thank you in advance!! • If it does happen, what are your options besides just paying off the balance? • How much time do they give you? • I just watched a video where an investor notifies the bank of the deed transfer via certified mail, instead of hiding and hoping they don't notice. • If it does happen, what are your options besides just paying off the balance? • How much time do they give you? • I just watched a video where an investor notifies the bank of the deed transfer via certified mail, instead of hiding and hoping they don't notice. Thoughts?? Thank you in advance!!

Account Closed Thank you. I greatly, greatly appreciate this. I have spent hours today researching this and this is the most direct and honest answer I have come across.

All that I do are Subject To. Well, I also do Lease Options and Wraps, but that's a different post. Once you have a Purchase & Sale Agreement signed, make lots of copies of the Mortgage Statement and just make the payments on time. Make sure the account number is on the check and include a copy of the mortgage statement each time and send to the address on the statement. No need to notify the bank, but If you do notify the bank you *greatly* increase the likelihood of the note being called due. If that should occur, you will get notice to cure and you have time to sell, refinance, or work out a deal with the bank. They just want to be paid on time and really don't care where the money comes from.

@Travis Lankford Sorry, I just saw this. The property is actually owned by a coworker of mine who desperately wants out. She is currently renting it and it has been nothing but hell for her.

@Ryan Deasy How did you find you deal in CT? I find the subject to very interesting but there aren't really wholesalers in my area, that I'm aware of.

@Travis Lankford Perfect!! Thank you. I will listen to that now. I was actually just listening to #002 where an investor had done over 100 subject to deals, had only one bank contact her and she was actually just able to work it out, without issues. Thanks again!

I've been burning though the old podcast and just listened to episode #70 with Grant Kemp. This guy is doing 16-20 subject to's a month in Dallas area. One thing he suggested was to set up a land trust or something of that nature, I can't remember exactly. Check out the podcast, this guy was really confident that the bank won't call the note due. Best of luck!

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Updated about 7 years ago on 01/15/2018. Most recent reply

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Posts: 322
Votes

Ryan DeasyPoster

Lender
Farmington, CT

Creative Real Estate Financing

"Subject to" - What have you heard / experienced??

Ryan DeasyPoster

Lender
Farmington, CT

Posted January 11, 2018 08:06

I have an opportunity to do a "subject to" deal in CT. Based on what I know, the numbers make sense, deal wise. What I am looking to find out is (I know this subject has been talked about before and I have read other forum posts and watched the YouTube videos):

How many of you have actually seen a lender call the loan due because of the "due on sale" clause?
- If it does happen, what are your options besides just paying off the balance?
- How much time do they give you?
- I just watched a video where an investor notifies the bank of the deed transfer via certified mail, instead of hiding and hoping they don't notice.
Thoughts?? Thank you in advance!!