Probably OK to take title subject to… - Posted by John Merchant
Posted by John Merchant on April 11, 2006 at 23:47:25:
Actually, probably 99% today of all properties sold “sub-to” are not foreclosed on in these days of comparitively low interest and fierce competition by the banks to put their money to work.
Even though the lender’s acceleration clause (or DOS clause) clearly gives them the right to do so, as long as their payments are kept up they just aren’t motivated to change things.
So if it’s enough of a bargain, you’ll probably be OK if you do it and odds are the bank will not foreclose on it as long as you make those payments on time.
Like River C says, they could do so, and you’d better just be ready for it if it happens and be prepared to hie yourself down to your own bank and refi that RE.
By the way,in lots of private loans, there is NO DOS clause so always read that mortgage before you do anything binding…I rarely put it in a carryback loan when I sell a property as it serves my purposes very well to help the buyer sell if he gets in trouble and is unable to pay me.