Being the Bank - Posted by Bill

Posted by Melissa on February 06, 2001 at 10:25:21:

Jim, How do you go about making sure the insurance is changed properly? I am a newbie and have a lot questions that still need to be answered. Thanks in advance for any info. Melissa, GA

Being the Bank - Posted by Bill

Posted by Bill on February 06, 2001 at 02:53:49:

I like the idea of being the bank. That is to buy a property whether it be traditionallly through a bank with a down payment or owner financing,then sell it at a slightly higher price and a slightly higher interest rate. I understand the positives and negatives of this but every lawyer and banker I have talked to say there will be a due on sale clause and see no way to do this legally. I have read many books and articles that talk about this but I still don’t see how to get around a due on sale clause.

Any help



It’s right there on the banner. - Posted by Bud Branstetter

Posted by Bud Branstetter on February 06, 2001 at 08:12:49:

Bill Gatten’s banner gives you a way to not violate the DOS clause legally. You can use a land trust to hide the elephant while violating the DOS clause as Jim points out or you can be blantant and ignore the issue because lenders accept your check instead of taking any adverse action.

Re: Being the Bank - Posted by Jim IL

Posted by Jim IL on February 06, 2001 at 04:42:30:

Goto the how to articles here on this site and read Bill Bronchicks articles on the due on sale issue.
Then goto his website ( and look in the articles there as well.
And if that is not enough to convince you, then do an archive search here and look up posts about the D.O.S. clause.
And if you are STILL afraid the the Due on Sale police, then don’t get into this business.
Lenders could care less if the title has transferred, as long as the payments are all made.
Also, you don’t go shouting that title has transferred.
This is what we use Land Trusts for, and other methods.
The common Due on sale clause does not say that the lender MUST or WILL call the loan due, it simply says that they can “at their option” call the loan due.
I know somewhere someone has had to deal with this, but frankly, I’m also sure that something went wrong to bring it to the lenders attention.
Like the seller contacting them, or the insurance not being changed properly, or payments getting behind or not made at all.

But, since when we do these deals, we intend to perform, this is not an issue to be concerned with.
Also, the education we give ourselves by reading here, and studying courses will help us learn how to do these things properly.

Try it, you’ll like it,
Jim IL