MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Are Banks Really Enforcing Due On Sale Clause?

26 Oct 2025 · 1 min

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Mark Kohler says banks rarely enforce due-on-sale clauses when homeowners move mortgaged properties into LLCs. Foreclosure costs and minimal interest gains don't justify the effort for banks. His practice handles thousands of these transfers without triggering enforcement.

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Banks are not across the country trying to exercise due on sale clauses. For people that transfer to LLC who are still paying their mortgages, it is not worth two points of interest. Three for the cost of foreclose and just exercise a due on sale is astronomical compared to the increased interest they would get. Maybe it's stupid. It is not happening. Whoever is out there saying this on the airwaves, back it up because I am not seeing it at all and we are helping thousands of clients every day with this situation.