Key takeaways
- Take title, leave mortgage in seller's name.
- Due-on-sale clause risk.
- Best for distressed sellers.
- Attorney mandatory.
- Insurance complications.
Core concepts
Mechanics
Title transfers; mortgage stays in seller name.
Due-on-sale
Lender can call loan.
Insurance
Name change requires careful handling.
Step-by-step framework
- 1Identify distressed seller.
- 2Attorney structure.
- 3Insurance binder.
- 4Close.
Advertisement
Common mistakes to avoid
- DIY without attorney.
- Ignoring due-on-sale.
Frequently asked questions
Legal?
Yes, but due-on-sale risk.
How common is acceleration?
Rare but real.
Best for whom?
Distressed sellers.
Risk?
Lender calls loan — refi or sell.
Action checklist
- ☐Attorney structured.
- ☐Insurance arranged.
- ☐Refi plan ready.
More from Real Estate Financing
Real Estate Financing Best Practices
Match loan term to hold period, optimize APR not rate, and plan the refinance ladder.
Common Financing Mistakes
Wrong product, wrong term, wrong lender — financing errors are expensive and slow to fix.
Beginner's Guide to Real Estate Financing
First loan — pre-approval, document prep, and product selection for new investors.
Advanced Real Estate Financing
Portfolio loans, blanket mortgages, lines of credit, and private capital — scaling beyond conventional.
Financing Resource Center
Mortgage calculator, comparison tools, and lender directories for capital stack decisions.
Conventional Investor Loans
Fannie Mae and Freddie Mac investor loans — cheapest rate, strictest qualification, capped at 10.