What is the Due on Sale Clause? Despite what you might read on the internet, don’t worry about the due-on-sale clause. The fact is is, since before 1960, we haven’t seen any bank foreclose based upon a violation of the due-on-sale clause while the note’s performing. The fact is is that banks are in the business of making loans and collecting mortgage payments. The due-on-sale clause would allow them to foreclose on your property by transferring the asset. But why would they do that? This could only hurt their interest. Like I’ve seen it a couple of times, where banks have foreclosed based upon it. But those were always in situations where the mortgage wasn’t getting paid, and that was gonna get foreclosed on anyway. So in that sense, don’t worry about it. Protect yourself with your proper asset protections strategy. My name is Scott Smith. I’m an asset protection real estate attorney, out of Austin, Texas, and I wanna help you.