OfflineA must read in my opinion
http://firsttuesdayjournal.com/january-article-of-the-month-the-due-on-t...
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A must read in my opinion
http://firsttuesdayjournal.com/january-article-of-the-month-the-due-on-t...
What the author here is basically saying is that because "due on sale" clauses were not enforced during the 80's inflation boom, they will naturally start calling them due because we're in an inflation "bust?" Interesting logic, I suppose, but there's some holes in it. Author ignores that due on sale clauses have never been enforced widely for any reason, and interest rates have been much lower than that for over 30 years.
If his logic (and therefore his article) were correct, they would have been enforcing the due on sale clause on every property for the last 30+ years. But just because they haven't started enforcing it yet, doesn't mean they can't start enforcing them tomorrow for no reason other than more profit. The argument is shaky at best, but the message is solid: The "Due On Sale" clause is NOT a threat, but it can become a threat at any time, for any reason or no reason. If they can robo-foreclose half the nation, and get in bed with DC politicians to hand out mortgage breaks (see BOA and Citibank), I guess enforcing this clause would be child's play for Big Banks and Big Government. So "buyer beware," I suppose?
Maybe I'm just exhausted, but I'm far more concerned about "reverse mortgages," (AKA: "Life Estate" or Reverse Financing). Those sound almost too good to be true, and could easily cause another property collapse, maybe not now but like, 20-50 years from now. Please watch that Michael Moore flick, "Capitalism: A Love Story." It will force your mind open and dump in alot of inside info. That's all I've got for tonight. Running on fumes. Have to hit the rack. All the best to everyone...
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
"What the author here is basically saying is that because "due on sale" clauses were not enforced during the 80's inflation boom, they will naturally start calling them due because we're in an inflation "bust?"
Where did he say that??