Legal Question in Real Estate Law in Texas

Real Estate

My brother is paying a mortgage on a house he is buying. Can he sell me the house owner finance without the mortgage company knowing? Is this legal?


Asked on 4/28/08, 12:57 pm

1 Answer from Attorneys
Joseph A. McDermott, III Attorney at Law

Re: Real Estate

Almost certainly not. Residential mortgages almost always have a "due on sale" clause meaning that the lender can demand payment in full of the entire loan amount if the underlying property is sold. Read the deed of truat -- which is not the same as the deed, be careful -- to be sure.

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Answered on 4/28/08, 1:19 pm


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