I picked up a primary residence for myself on a 10 year lease with option to buy at the current mortgage balance at time of exercise..now that's a GREAT deal!

However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law.

And still, if you stick with the most basic plan - eat healthy, natural foods and exercise a few days a week - and actually stick with it for a few months, it doesn't need to be the BEST program - it will still work!

Will the lender exercise their right to accelerate the loan?

And what I see of the crowd funding deals is they are spread all over the US.. so extra caution needs to be exercised in the underwriting process.

What's the reasoning behind putting customers through this exercise?

Note that this is not 2% return on your investment because you are not investing $100,000 (you are only investing your down payment, which is hopefully very small).Thus:GR = DS + E + CGross rent must equal the sum of debt service, expenses, and desired cash flow.GR = DS + .5GR + CThis substitution is possible because E = .5 gross rents, as already defined above..5GR = DS + C.5GR = 1000 + 150GR = 2 * 1150 = 2300Now, all that said, this is largely a useless exercise.

Your ability to lease and later exercise the option could get wiped out.You might have a claim against the present owner but that is not so clear and might result is no financial gain.If you can not buy it is likely your option will become worthless if the foreclosure goes through.Is the option recorded?

As part of a block grant for community development, the developer worked a deal with the city to contribute $15K per unit towards the downpayment towards the conversion when a tenant chose to exercise.

He said; As with a trust, lenders do not exercise the "due on transfer/sale" clause when real property is transferred to the same individuals in an official capacity.