Talk to your own legal profession for advice.The due-on-sale clause has also been discussed to death here.

Asking for legal advice from individuals you do not even know is a sure way to get you into hot water.

It's legal in CO to give a tenant notice to terminate/vacate with only 10 days notice?

Maybe that's OK, but you've legally transferred owner ship to C.

Seth Halstead,I am not an attorney and am not providing legal advice.

I'm just turned off by the prospect of having the loan go into default and then moving forward with foreclosure... though, I hear some people get into debt deals hoping for that to happen.Perhaps you can't really generalize, and must examine deal by deal...

I disclosed it although I didn't legally have to, I figured the same neighbors would run to share the story to any prospective buyers.

You need to be able to ask not only "is this legal?"

, but if a title search indicates no cloud on title, that should legally qualify as "clear title" I would think.I know state customs are going to vary (in my state, it's very atypical for the seller to pay any title or closing costs unless specifically stated in the contract), but even if it's customary in your state for the seller to pay title search/insurance costs, short sales generally have their own rules.

Second, if work has not been completed and permits signed off, the buyer's stuck with finishing the project and that's worth a big chunk of the value added.Keep in mind that, just as a $10,000 car with a $3,000 dent is not worth $7,000, I would begin by really examining why this property fit my portfolio If it doesn't, I'd want make sure that I didn't get stuck with it.