Has anyone closed a subject to in California?

Question

Hello All,

I wanted to see if anyone has successfully been able to close a subject to transaction here in California. The reason I am asking is because I want to start marketing for pre foreclosure leads but I know that California is strict and the due on sale clause can kick in so I was considering looking out of state. If you have or know anyone who has successfully closed a subject to in Cali  I would greatly appreciate tips and recommendations!

Jay Dimacali · Answer

@David Iniguez  Hi David.  I PM you to see if you got any updates.

Darius Ogloza · Answer

The due on sale clause is a standard term used by banks in their promissory notes.  They are not limited by any geography.  I am not aware of any state laws anywhere that purport to invalidate these clauses.  This is not a California issue - you will run into it anywhere.  Your best hope is to find loans that are assumable.  I understand that in the old days certain VA loans were assumable but I doubt you will find anything out there in this day and age.

Steve Morris · Answer

I know that California is strict and the due on sale clause

Explain why this is an issue?  Almost any non-assumption transaction means you need to pay off existing debt at close.

Also, the "due on sale" is more a lender provision than state law isn't?

Account Closed · Answer

I guess they are doing them in California since they are doing them in Arizona instead.

Average Turnkey Cash Flow Per Door In Phoenix
Metro Area No Bank Financing Needed

https://www.biggerpockets.com/forums/600/topics/584916-average-cash-flow-per-door-in-phoenix-metro-area

James Wise · Answer

Dave before you head down this path I think you should take a look at the following thread.

"Subject To" Real Estate Investing is Slimy. Prove me Wrong.

David Iniguez · Answer

@Mike M.

Please Pm me I’m interested in investing with you !

Has anyone closed a subject to in California?

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