They are not illegal, but as Bryan pointed out, they do give the lender the right to utilize the due on sales clause, though I have yet to hear of one case that clause has been executed.The important step in such a transaction is that you either have the cash to pay off the loan, the ability to refi if the DOS was every carried out, or better yet, disclose ahead of time.

Also if it has been on the market a long time then that is the fault of the listing broker/agent.It is inevitable that if a listing broker/agent does not control the seller from the get go then ultimately the broker/agent will be blamed later on for giving in to the sellers demands.You have to educate them upfront about real value to get it sold in a timely manner.If they won't do that you move onto the next.The last thing you want to be known for is taking overpriced listings.Brokers/agents won't want to be on your list as all you carry is overpriced product and have built up the sellers expectations so unrealistically that any potential buyer will be too far apart from the seller in negotiations to do a deal.

And if you let your emotions blow the deal and have to start over, the carry costs while you re-market, (ie taxes, insurance, water, sewer, electric, interest, heat if a cold climate) and wait to close, will exceed what you offer them to take the deal.

Judge Learned Hand came down with a decision DECADES ago that stated it is the right/obligation of every taxpayer to arrange his finances in a way to pay the least amount of taxes possible (paraphrased).This ability has definitely helped in wealth creation for me and others.It is crazy that the tax burden continues to be carried by fewer and fewer people.

ARV - purchase costs - repair costs- closing costs - carrying costs = offer price4.

BTW - I showed my "Lifetime License to Carry" to one of my Califoria buddies while I was out there to his total disbelief.

Would he/she carry some paper beyond the down payment amount?

I think I can get a good deal on this property, but I'm don't want to carry an empty property all winter and eat the mortgage.I guess I'm not looking for answers here...I know what price to get it at.

OR, you have another option .... do nothing and let things carry on the way they are.

You are correct..Sometimes I get carried away..Mark, you must be kidding me...I purchase a property @ %20 below fair market value with fannie/freedie money and not use one dime out of my pocket, then if you do the honest numbers(as I said these are turn key operations that needed nothing).Unit #1 mortgage incl tax@insur $801 wtr/swr/trash $250 quarter comes out to $10612 yr rents @1820 mth =21840 yr$11228 yr positive w/ no money down isn't stellar???