how to make money with real estate options_19

_{Although I know of no case nationwide where a residential mortgage or deed of}

_{trust lender has declared a loan to be in default because the borrower signed a}

_{lease-option agreement on the property securing the mortgage or deed of trust}

_{and promissory note, you need to know that the lender 's discovery of a leaseoption}

_{agreement can trigger the due-on-sale clause contained in residential}

_{mortgage and deed of trust loans. Section 591.2 (b) of Title 12, Banks and Banking,}

_{of the Code of Federal Regulations states:}

_{Due-on-sale clause means a contract provision which authorizes the}

_{lender, at its option, to declare immediately due and payable sums secured}

_{by the lender 's security instrument upon a sale or transfer of all}

_{or any part of the real property securing the loan without the lender 's}

_{prior written consent. For purposes of this definition, a sale or transfer}

_{means the conveyance of real property of any right, title or interest}

_{therein, whether legal or equitable, whether voluntary or involuntary,}

_{by outright sale, deed, installment sale contract, land contract, contract}

_{for deed, leasehold interest with a term greater than three years,}

_{lease-option contract or any other method of conveyance of real property}

_interests.