Check with your lawyer that such a penalty is permissible in your state though.

Probably the hardest thing some of us ever do is give ourselves permission to risk failure to succeed. 

thx u Does the loan docs have a provision requiring permission from the lender to change ownership entities?  

selling notes do not have to get permission from the payor on the note to be legal nor do they have to notify but its common to notify so you know where to send your payment.

However, the challenge with MTRs lies in the CC&R (Covenants, Conditions, and Restrictions) and HOA (Homeowners Association) regulations.To proceed with MTRs, it's crucial to carefully review the CC&R to ensure that leasing out a portion of the lot to tenants is permissible.

When someone else is on ownership (or deed/title) then they would need to sign a couple of things at closing to give permission for a lien to be applied to the property they own - but that doesn't mean that HAVE to be on the loan. 

I've learned the easiest way to do this is ask the owner to remove everything unnecessary for guest use AND give us permission and the freedom to remove items as we see best.Less stuff in the home, less issues and less work each turnover.

They completed the review of the voucher on December 3rd AND REFUSED TO COVER THE TENANT'S RENT FOR NOVEMBER because they didn't have LMHA permission to move in.We had a home pass inspection on December 20th and still haven't received permission for the tenant to move in (January 3rd)...the tenant just had to pay for an additional month's rent at their old home and we are out another month without our rental occupied, incurring carrying costs, and risking vandalism.

Title company also signs a clause that waves them needing sellers permission to release earnest money back (depending on state). 

We always get that permission in writing, though, to cover our bases.All in all, I recommend nurturing these relationships as these are among the best clients to serve in the MTR space.