Triggering a due-on-sale clause may not be illegal or immoral, but concealing the fact that such a clause has been triggered could possibly be both. People who are trying to get around due-on-sale clauses often lie to lenders or insurance companies, or ask others to do so. If you cannot disclose it, it’s probably wrong.
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Federal law pertaining to Due-on-Sale
A due-on-sale clause is a clause in a loan or promissory note that stipulates that the full balance of the loan may be called due (repaid in full) upon sale or transfer of ownership of the property used to secure the note.
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