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Updated almost 6 years ago on . Most recent reply

Subject to with Wells Fargo
Hello,
I have a possible subject to deal. Just wondering if anyone has had any experiences in doing this with a bank like Wells Fargo.
Yes, I am asking about the dreaded "due on sale" clause. Please share your thoughts and experiences.
Thank you!
- Ryan Deasy
- [email protected]
Most Popular Reply

The strategy I have used to avoid triggering a 'due-on-sale' involves transferring title into an Inter-Vivos Revocable Trust. Once that is done, the beneficiaries can transfer their interest to whoever you want.
Garn-St. Germain allows for trusts used for estate planning purposes, so a proper trust won't trigger the clause--unless the payments to the lender are not made; then all bets are off.
IMO, subject-to transactions should involve total disclosures to the original owner/mortgagor and signed documentation to that effect. Use a lawyer.
NOTE: I'm a humble re broker, not an attorney. This is not legal advice.