If you’ve been looking into creating wrap loans, you’ve probably come across the term “due on sale.” And if you’re already creating wraps, it’s something you need to understand—because it can impact your deals.
Here’s the short version:
Most underlying mortgages originated by banks include a due on sale clause. This gives the lender the right to call the loan due if the property is transferred to a new owner—like what happens in a wrap loan.
That can sound scary. And if you’re not prepared, it can be a serious challenge.
But here’s the problem: when you search online or ask around at events, the information is all over the place. You’ll typically hear from two camps:
1/ The scaremongers. They’ll warn you about the risks and make you want to run the other way. Ironically, most of them have never done a wrap loan themselves.
2/ The veterans. They’ve been around forever and say, “I’ve been doing this for decades never had a problem—don’t worry about it!”
Neither of these perspectives is truly helpful.
The truth is:
✅ Yes, the risk is real.
✅ Yes, it can be mitigated.
✅ No, wrap loans are not for everyone and every deal.
That’s why I’m hosting a special live webinar next week with Caleb Christopher, a transaction coordinator who specializes in wrap loan compliance and due on sale mitigation. He’ll walk us through:
- What actually triggers due on sale
- How to structure deals to minimize the risk
- What’s changed recently that you need to know
- What to do if the bank actually calls the loan due
If you’re doing—or thinking about doing—wrap loans, this is one session you don’t want to miss.
📅 Register for the webinar HERE
