Purchasing the Deed Subject to and the Due on Sale Clause

[Howard C]

I have come to an agreement with the seller who is looking to sell his deed to me, subject to the current mortgage he has with the lender. He is doing a quit-claim to me for a 25K fee. My concern has to with the "due on sale" clause that exists in his mortgage, and most, in general. Has anybody heard or actually experienced the lender calling the note due and actually exercising this clause. If so, how much time did the bank give you to pay the note off before commencing foreclosure?

[Account Closed]

This subject has been discussed here many, many times. Search on subject to or due on sale and you'll could be reading till this summer. Loans being called is rare, but it does happen.

I suggest that you do not get a quit claim deed. Use whatever deed normally conveys interest in real property for your area. Get a title report so you know what's going on. Make sure you get an authorization to release information signed by the borrower(s) and all the loan info so you can communicate with the lender in the future if you need to.

What state and is the borrower in foreclosure?