Does a gut-job ever trigger a Due On Sale clause?

[Kristina Jensen]

Scenario:

You buy an owner occupied property, then immediately start a full gut job renovation.  Depending on permitting delays, labor/material shortage, COVID related delays, inspections, actual work conducted, etc., you don't actually move into the home for a year while making your payments.

I wonder if the bank would execute the DoS clause either because 1) if they visited during demo/construction, their initial investment has lost value, or 2) you haven't move into the home yet.

Does anyone have insight on this?  Thank you.

[Jay Hinrichs]

waste is an event of default in pretty much all mortgages/deeds of trust.  banks dont do drivebys  unless they are local community banks who maybe worried about the borrower or collateral. 

as long as payments were being made there would be no reason to do a driveby.

due on sale gets triggered by change of insurance .. but again very rare.