Have you have ever considered entering into a 7 day notice on a wrap around mortgage transaction? If so you must be aware of the due on sale clause. A competent Houston Attorney from Guerra | Days Law Group can help, when it comes to a 7 day notice on a wrap around mortgage. This “due on sale clause” that we speak about is a clause in a deed of trust that allows the underlying lien holder to call the note due in full if there is a transfer of the property without paying the lien in full.
This can be very scary for potential buyers and sellers entering into these type of transactions in Texas. Please feel free to contact a Houston attorney.
All though the 7 Day notice applies to conveyances of property with any existing lien, this blog will be focusing on wrap around mortgage transactions.
Wrap around mortgage transactions are the most common conveyance of property with an existing lien.
To help lienholders find out if properties are being conveyed, Texas has created laws requiring notices from the Seller to the Buyer and lienholder.