Q: I have been doing a lot of research about buying a home subject to the mortgage.
I wanted to know if there are any ways to help prevent the due on sale clause.
Thank you.
A: if the existing first mortgage is a VA mortgage, a purchase "subject to" is possible. However, the Seller may wish to be relieved as a responsible party and make this a condition of sale. The other ways, depending on the exact language of the existing mortgage due upon language, are a long term in recordable lease or option to option. These are dangerous solutions as the seller has not conveyed title and judgment against the seller would encumber the property which could cause you difficulties in the future. Another way would be for the seller to obtain permission from the mortgagee to convey the property to an LLC. Then have the sole members of the LLC sell their shares in the LLC which continues to be the transferee approved by the lender. But with interest rates at historic lows why not apply for mortgage in you name so you are the sole title owner
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