I own 9 properties I have bought Sub 2 and never heard of this. 5 of the 9 are FHA guaranteed. To the best of my knowledge, as long as you did not comit fraud, no criminal activites are comitted. The lender does have the right to call the loan due and start foreclosure if they desire. But they have not done this over the past 3 years, so I feel they are ok with it, because I have been fairly open about it. Bill can answer this question better as his info was used to do this. After hearing him say repeatedly there is no due on sale jail, I feel like someone was spouting off, that was uneducated about such maters, or thying to pull someones chain.
Just my opinion
I was visiting another site on another board and read that if you want do a ‘subject to’ deal on an FHA,VA or other goverment housing, your attorney can give you the ugly details of just what it is like inside a federal prison. I would only ask that a qualified individual please speak to this situation and clear this up for me or confirm its reality. I am new and would be horrified to know that I did something like this unknowingly but would have to suffer its consequences because of my lack of due diligence in this matter.