re: Owner financing

Pretty much any mortgage written in the last 10 years at least is going to have a due on sale clause that could be triggered by a bond for deed / wrap mortgage / owner finance situation. Generally, the bank finds out when the homeowner's insurance is switched to a dwelling-only policy that lists the new people as an additional insured.

The reality is, if all the terms of the mortgage are being met, does the bank really want to call a mortgage that is performing? Especially as they are still trying to deal with the overhang of foreclosures?

I would say it is a low risk, but still a risk.