due on sale clause in mortgage

[carvednstone]

I want to sell my home to my nephew on a land contract. My mortgage has a due on sale clause & they won't give me written permission to sell. I heard that federal law prohibits them from enforcing the due on sale clause if I am selling to a family member. Is this true? Does local laws overide this, if any? And what is defined as a family member? I would like to go through with this sale. I am in Michigan

 

[HomeGuru]

I want to sell my home to my nephew on a land contract. My mortgage has a due on sale clause & they won't give me written permission to sell. I heard that federal law prohibits them from enforcing the due on sale clause if I am selling to a family member. Is this true?

**A: no.
******
Does local laws overide this, if any?
**A: no.
********
And what is defined as a family member?
**A: by whose definition, City, County, State, Federal...?
************

I would like to go through with this sale. I am in Michigan

**A: why not refinance the loan with you and nephew as co-borrowers? Do a rate and term loan.