Ask Ron – Erik W.

Posted on July 27, 2011 by global

In this week’s Ask Ron, Eric W. asks Ron about what happens in the unlikely event that the lender enforces the due on sale clause.

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5 Responses to Ask Ron – Erik W.

  1. Jeff Clayton says:
    July 14, 2012 at 10:11 pm

    Due on Sale-It just ain’t gonna happen. Mortgage interest rates would have to rise at least 4+ points from where they are now, (3.5 %), which won’t be for another 10+ years I predict.

    Ron is right, fuggedaboutit for now. It’s not an issue. Even if it happens just ask them to reconsider, ask for more time, refinance, pay them off by selling property, or sue the bank. Lots of choices.

    Reply
  2. James Noullet says:
    July 16, 2012 at 9:17 pm

    thanks for the info Ron

    Reply
  3. John Rogers says:
    August 31, 2012 at 4:24 am

    Not to worry. It’s not likely to happen. Thanks Ron

    Reply
  4. Scott Burton says:
    February 29, 2016 at 12:29 am

    What if the loan is a HELOC ?

    Reply
  5. John Willis says:
    March 2, 2016 at 11:23 pm

    I also have a HELOC related question. I’m working on a house with a $200 ARV and a $140 HELOC (that’s the only debt on the house). The owner’s financial situation might result in them filing bankruptcy. Does anyone have any ideas about how to structure this transaction to protect against both HELOC and owner bankruptcy risk.

    Reply

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