Posted by JoeS on March 06, 2002 at 20:38:54:
Key words are “at the lender’s option and sole discretion”. Will they call the loan? Maybe, but probably not as long as the payment are made ON TIME! The bank wants their money back each month, they are not in the real estate selling business. And if your loan has a higher than current interest rate, why will they want to call it in? Make the payments and you should have no trouble. Check out Mr. Bronchicks site at www.legalwiz.com for more info.
Alienation/Due on Sale Clause - Posted by wpage
Posted by wpage on March 06, 2002 at 15:59:53:
Interested to know how I could sell my property “subject2” and avoid the following due on sale clause without notifying the bank and still be legal?
clause as written in loan:
“The borrower covenants and agrees with the lender that in
the event of the borrower hypothecating, selling, conveying, transferring or entering into an agreement for sale or transfer of title of the property herein hypothecated, without prior written approval of the lender,shall forthwith become due and payable at the lender’s option and sole discretion” thanks