Posted by William Bronchick on March 05, 2000 at 13:24:51:
Yes, it triggers it, but your chances are not that great of getting caught unless interest rates soar.
What’s the Chances of a Land Contract Triggering the Due-On-Sale Clause? - Posted by Frank
Posted by Frank on March 03, 2000 at 15:01:07:
I was reading up on Land Contracts and was surprised to learn that they can trigger the due-on-sale clause. Even though legal title has not passed, equitable title has and this can trigger the clause. Most investors I’ve heard from have always said that Land Contracts are a method around due-on-sale clauses - but not so as I’ve read. Has anyone done a Land Contract that was found out by the lending institution? What’s the chances of this happening and how do you approach the seller to “keep it quiet”?
Your best bet? Use Bill Gatten’s PACTrust - Posted by Robert M. Campbell
Posted by Robert M. Campbell on March 03, 2000 at 21:16:32:
While I am no expert on avoiding DOS clauses, I believe that Bill Gatten’s PACTrust should work well for you.
Personally, I think the PACTrust is an amazing ~ and versatile ~ vehicle for creative real estate investing.
The more I learn . . . the more I am impressed.
Robert M. Campbell
About 102% . . . - Posted by William Bronchick
Posted by William Bronchick on March 03, 2000 at 18:27:58:
Land contracts will trigger the due on sale, except on VA-guaranteed loans.
the issue is, how to do it wihout getting caught?
Re: What’s the Chances of a Land Contract Triggering the Due-On-Sale Clause? - Posted by Chris
Posted by Chris on March 03, 2000 at 18:09:55:
Frank-
You may want to go to the archives search at the top of the page for the terms “DOS”, “DUE ON SALE”, “LAND TRUST”. There have been tons of posts on this.
-Good Luck, Chris
Re: Your best bet? Use Bill Gatten’s PACTrust - Posted by Bill Gatten
Posted by Bill Gatten on March 04, 2000 at 13:56:14:
Thanks Robert,
Nice try.
Bill
Re: About 102% . . . - Posted by Frank
Posted by Frank on March 04, 2000 at 22:02:30:
Exactly, should I assume if I use a Land Contract that the DOS will be triggered? Or is this pretty much unlikely? I’m interested in how often investors get caught using these.
Re: About 102% . . . - Posted by Shooter
Posted by Shooter on March 03, 2000 at 20:49:05:
Bill,
That is an easy answer…don’t record the Land Contract. I think you taught that to me sometime ago. Who’s afraid of the DOS anyway?