This Mortgage “Clause” Could KILL Your Rental Property

This Mortgage “Clause” Could KILL Your Rental Property

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Incoming foreclosures—is your rental property safe? As mortgage rates continue to climb, banks are doubling down on mortgage rules and regulations they’ve put into place. If you violate one specific clause in your mortgage, banks could force you to foreclose, refinance, or pay off your home in one fell swoop. Those trying one "creative" investing strategy could be at bigger risk. This strategy has risen to fame over the past year and is not inherently risky, but could pose major problems that inexperienced investors MUST know about.

Welcome back to Mortgage (or Morbid) Mondays, where David Greene and Christian Bachelder touch on sweeping moves that banks and lenders are starting to make. With more investors trying out strategies like subject to, banks are playing their hand to force borrowers into paying for, or giving back, their homes. And while this is NOT happening to every investor trying out this strategy, it is becoming increasingly possible that creative finance investors are at risk and MUST protect themselves when they invest.

Do you think these moves by the banks could hurt real estate investing? Have you tried any of the creative financing strategies discussed in this video? Let us know in the comments below!

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00:00 This Could KILL Your Deal
04:08 Mortgage Rates Could Force Foreclosures
08:37 Before You Try Creative Financing
12:52 Connect with David and Christian!

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By: BiggerPockets
Title: This Mortgage “Clause” Could KILL Your Rental Property
Sourced From: www.youtube.com/watch?v=SQOXkw8DOrc



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