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| *Ostroff, Fair and Company>>>Renting & Real Estate |
Are due on sale clauses common on mortgage paper? |
Even if you're selling it to yourself? Will a Bargain and Sale deed work if I take a loan out in my name and then transfer it to my business? YES, they are standard. They approved YOU for the financing... You cannot "sell" it to yourself, you already own it . You CAN transfer via deed for various reason For estate planning purposes, like a trust, there should be no problem , however the lender may want to charge to review what you are doing. If you want to transfer to a LLC or similar, legally that is NOT you. If you want to transfer ownership (via grant deed) the lender may or may not even find out. What exactly are you trying to accomplish ? Totally agree with Common Cents. He gives some good advice. Although he is more technical. Let me explain why this clause in in your mortgage. Its a risk factor. When you sign a mortgage loan they gave the loan to you. If you change it to a company or a business or another person, thats not the risk the mortgage company agreed too. If your intention is to have it in your companies name do it upfront. If you want to apply for a loan in your name and change it after closing with the court............... Well if they find out it could be loan fraud if that was your intention but mostly likely they will just foreclose on your property. Ive seen this happen many times. 30 years mortgage real estate exp |
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