Lease to Own Properties

It shouldn't as long as the owner of record is the original mortgagee. What usually will trigger the clause is when the name of ownership gets changed. In some states, the banks are not forcing the issue. In my state, Florida, more banks ARE enforcing the due on sale clause the moment the name change occurs. Also in FL, there are insurance issues that happen so you need to change the name for your own protection. Every state is different.
My suggestion, make sure the time period for the L/O coinsides with the mortgage time frame or have the bal. due available should the clause come into effect. Check which bank holds the mortgage and see what their record is on enforcing the clause.

Hope this helps...

Andy Sager
DG's AndyS
CFIC member

So would adding my name to the deed count as a name change? I want my name on the deed as well to protect my time and money invested in the property.

File a memorandum of option with a performance deed of trust to secure your interest. That way you don't have to mess with the deed.

TRSD is correct. File a memorandum of option which gives you the right but not the obligation to purchase the house at a set price. Therefore, the due on sale clause shouldn't be triggered.

Just remember to check how any insurance issues might come from this transaction. We had a situation here where a buyer wanted to do a "Subject To" and couldn't get title insurance because his name would not be on the deed. Then he couldn't get mortgage insurance because the house wasn't his.
Confirm, confirm, confirm

Andy Sager
DG's AndyS
CFIC member

I agree if the owner of record doesn't change than you shouldn't have any issue.

But in Utah. I have taken a number of properties subject to, I know my dad has done it for years, we've never had any lender enforce the due on sale clause. I have owned properties for years and the seller still has the loan in their name.

You can network with some of your investors in your area and see if they have had any banks enforce the DOS clause.

Great question though

Mikessler
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