Title Holding Trust Forum > Using Land Trust to Get Around Due on Sale Clause
I've been reading alot about using the land trust to sell property so that the bank does not go after the due on sale clause. Is this true?
February 24, 2011 |
Annonymous
Annonymous
Generally, no, it is not true. First, have your attorney review the loan documents to determine whether you have a due on sale clause, If you do, and you most likely to, then you must determine whether the Land Trust will accomplish what you are trying to do. In most cases, the assignment of the Land Trust to another party is considered a conveyance of title of the underlying property held in the Land Trust just as if you had sold the property and will trigger the due on sale clause. So, be very, very careful here. You do not want to accidentally commit lender fraud.
April 4, 2011 |
Staff
Staff
