Re: What does the due do on sale clause mean anyway? - Posted by chris
Posted by chris on January 19, 2000 at 04:11:34:
Due-on-Sale: A typical clause of a mortgage requiring that the outstanding balance be paid in full on the sale of the property. In recent years the language of this clause has been broadened in many mortgages to include as the triggering event not only the actual sale of a property but the transfer of any interest in the property.
Look at her loan paperwork to see if it even has a due on sale clause. Older FHA/VA loans from the late 80’s and prior are fully assumable without qualifying.
A lease option can trigger a due on sale clause. So could you doing a subject to purchase (you make the payments, she keeps the loan in her name). However, if you are making payments on time the lender has little reason to trigger the DOS.
Read the articles on this site about the due on sale clause for more info. Keep these two words in your mind: LAND TRUST.
-Good luck, Chris