An option does trigger the due on sale clause.

If you take title subject to the mortgage and it's not assumable then you run the risk of triggering the Due on Sale Clause in the mortgage and having the remaining balance due and payable on demand.Sounds like she had one of World Savings famous "pick a payment" mortgage which was cloned by a few other banks and now owned by Wells Fargo.

Hi, I've been reading and studying R.E. investing for some years now and I'm having a hard time pulling that trigger and getting that first wholesale deal under my belt.

Tax planning involves some thinking prior to acting - in this case, the sale is the event that triggered gains that then trigger taxes; so before the sale, you should have consulted CPA / tax planner to determine options to minimize tax impact.Of course, since you say you were flipping, a 1031 exchange never was an option.

If she sells you the house, it will trigger her due on sale clause.

At the very least you have solidly pulled the trigger.

What do you think is the one things stopping you from pulling the trigger?

I just have to get the nerve up to pull the trigger.

The buyer just needs to know when the lien will trigger the sale of the property.In some states a property tax lien that was sold to an investor as a tax lien certificate will never result in the title of the property going to the investor.

That is why the IRS does not tax the consideration until the option is exercised or it expires.A transfer of title is what triggers the DOS.