Posted by B.L.Renfrow on September 13, 2003 at 08:06:38:
You definitely want to carefully read the agreement to determine whether it would be violated by a lease option. If you’re still not sure, it would be worthwhile to have your attorney review it.
You are correct that a private note holder would be more likely than a bank to move to enforce a DOS violation. I had a similar experience in the past where a private note holder verbally agreed to me taking a property subject-to, then down the road developed “amnesia” and called the note due.
If you do talk to the note holder (which may or may not be necessary, depending upon the language in the contract) and if he agrees, be sure to get his agreement in writing.