Due on Sale - Part II
by William Bronchick
In my article How to Deal with the Due on Sale Clause, I outlined a basic strategy for using a revocable land trust to quietly circumvent the "due-on-sale" clause. The following is a strategy that can be combined to make a bundle of money with owner-carry mortgages and land contracts.
You are probably familiar with the basic strategy of buying homes with FHA or VA assumable mortgages, then selling the home for a few thousand bucks. The new buyer assumes the loan and you are out of the picture.
Some people like to buy the home, assume the loan, then sell it on an installment land contract (a.k.a. "contract-for-deed"). The payments collected on the ILC are usually higher, creating a nice monthly spread. The under...
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