#68 - Sub2 ILLEGAL Now?! Debunking the Fear, Fraud & Facts
Wed Feb 04 2026
Hans debunks claims from a popular Airbnb influencer alleging that subject-to (sub2) real estate deals are illegal and constitute conspiracy to commit mortgage fraud.
The influencer argues that systematically targeting sellers for sub2 deals and concealing transfers from lenders violates due-on-sale clauses, risking legal action. Hans counters with evidence: HUD-1 settlement statements and closing disclosures include line items for sub2 transactions, suggesting federal recognition.
A specialized attorney’s document clarifies that due-on-sale clauses grant lenders the option to accelerate loans but do not prohibit transfers or constitute fraud. Lenders rarely enforce these clauses if payments are timely, often adopting a “don’t ask, don’t tell” stance. Hans critiques a cited Reddit “horror story” as a case of poor investor conduct, not systemic illegality. No known lawsuits target sub2 investors for due-on-sale violations.
Hans urges transparency and ethical practices.
Visit https://www.sub2investor.com/ for resources.
Watch at YouTube.com/Sub2Investor and leave a 5-star review. Thanks & peace!
More
Hans debunks claims from a popular Airbnb influencer alleging that subject-to (sub2) real estate deals are illegal and constitute conspiracy to commit mortgage fraud. The influencer argues that systematically targeting sellers for sub2 deals and concealing transfers from lenders violates due-on-sale clauses, risking legal action. Hans counters with evidence: HUD-1 settlement statements and closing disclosures include line items for sub2 transactions, suggesting federal recognition. A specialized attorney’s document clarifies that due-on-sale clauses grant lenders the option to accelerate loans but do not prohibit transfers or constitute fraud. Lenders rarely enforce these clauses if payments are timely, often adopting a “don’t ask, don’t tell” stance. Hans critiques a cited Reddit “horror story” as a case of poor investor conduct, not systemic illegality. No known lawsuits target sub2 investors for due-on-sale violations. Hans urges transparency and ethical practices. Visit https://www.sub2investor.com/ for resources. Watch at YouTube.com/Sub2Investor and leave a 5-star review. Thanks & peace!