novice_buyer
Junior Member
What is the name of your state (only U.S. law)? Massachusetts
Is the Due-on-sale clause already on all mortgages and can be activated when the percentage interest on a condo is reduced?
Or is it not on mortgages but is placed on them only when the percentage interest is reduced?
Let me explain a bit further.
If a person (not me) in a condo building wants to add common area space to their unit, they have to have the Master Deed amended (not an easy task).
Someone told me that one of the things that needs to get done to amend a Master Deed is to get the mortgage companies, for the other condo owners in the building, to sign off on the fact that the ownership interests in the condos on their loans will now be reduced. I understand that banks are reluctant to do this and that somehow the Due-on-sale clause is related to this (or can be applied to this situation).
Has anyone heard anything about this?
Is the Due-on-sale clause already on all mortgages and can be activated when the percentage interest on a condo is reduced?
Or is it not on mortgages but is placed on them only when the percentage interest is reduced?
Let me explain a bit further.
If a person (not me) in a condo building wants to add common area space to their unit, they have to have the Master Deed amended (not an easy task).
Someone told me that one of the things that needs to get done to amend a Master Deed is to get the mortgage companies, for the other condo owners in the building, to sign off on the fact that the ownership interests in the condos on their loans will now be reduced. I understand that banks are reluctant to do this and that somehow the Due-on-sale clause is related to this (or can be applied to this situation).
Has anyone heard anything about this?