Full question:
My parents got our home loan and lived with us for a couple years until they built a smaller home on the same property. Due to my husbands previous marriage and his x wife's failure to get a home in Vegas out of his name, we cannot qualify for the loan. The loan is in my dad's name but we need to somehow get the home in our name for tax purposes and to protect him. Can he owner finance for us even when there is a loan in his name?
- Category: Real Property
- Subcategory: Sales
- Date:
- State: Missouri
Answer:
We recommend contacting the lender to check for a due-on-sale clause. If such a clause exists, it could require the entire loan balance to be paid immediately upon transferring the property. This clause allows the lender to demand full payment if the property is sold, transferred, or otherwise disposed of without their consent.
Most mortgages include a due-on-sale clause, which can impact your ability to have your dad owner finance the property while a loan is still in his name. It's important to understand these terms before proceeding.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.