Posted by Dallas Allbritton on June 19, 2001 at 19:41:53:
Good question but before I give you the answer you need to look at a few things in your deal.
What is the length and terms of your L/O? If it is for 3 years or less there will be no problems. You can set it for 3 years with an option to renew it as many times as you wish.
A L/O and the recording of the document does not consitute a “sale” of the property, you only have an “option” to buy at some point in time. As a result if the lender “found” the contract it would not activate the “due on sale clause” because the owner has not “sold” the property.
MOST IMPORTANT… There is no such thing as “mortgage police” so the only real way the lender will find out that someone else is in the house is if they see checks with your name on them sening in payments. If you are going to make the payments, use a Cashiers check or BANK money order and just put the loan number on the payment.
That being the case the answer to you question is… NOTHING!! A.I.G.