This represents the restrictions of contract stated in the Mortgage. If you violate the restrictions the lender can call the note due and payable at any time. This clause restricts the borrower from letting another individual assume the loan.
A clause set forth in some mortgages and deeds of trust whereby the Lender or Seller has the right to "call in" the balance upon the sale or transfer of the property by the Buyer or Purchaser to a third party.
Dragnet Clause Earnest Money
An clause requiring a full payment of a mortgage or deed of trust upon transfer of property ownership.
A clause in a mortgage agreement providing that, if the mortgagor (the borrower) sells, transfers, or, in some instances, encumbers the property, the mortgagee (the lender) has the right to demand the outstanding balance in full.
A clause in a mortgage loan, which gives the lender the right to demand payment in full when property changes ownership.
A provision in a mortgage that allows the lender to demand full payment upon sale of the property.
If a mortgage contains a due-on-sale clause, the title may not be transferable to a new buyer. Instead, the lender can make the remaining balance due if the title is transferred.
A clause in the Deed of Trust or Mortgage that states that the entire loan is due upon the sale of the property.
An acceleration clause granting the lender the right to demand full payment of the mortgage upon a sale of the property.
A condition of a mortgage or deed of trust that states the loan must be paid when the property is sold.
A mortgage clause that calls for the payoff of a loan in the event of a sale or conveyance of the collateral prior to maturity of the loan.
Most mortgages today have this clause written into it, to protect the mortgagor's interest in the property. Simply put, the owner cannot sell or transfer any right in the property to another without written consent of the mortgagor or the mortgagor may call the entire mortgage due. A more thorough discussion is included later.
A clause in a mortgage that gives the lender the right to declare the entire amount due and payable in full immediately, if the borrower sells the property.
A clause in the in a mortgage contract that calls for a payment of the loan in full upon the transfer of ownership of the property.
A clause in a loan agreement which states that the entire amount of the loan shall be due and payable if the security property is sold.
An acceleration clause that requires full payment of a mortgage or deed of trust when secured property changes ownership.
A clause that "accelerates" the due date of a promissory note. Though the note may have another 5-20 years to run, the lender may call the note due and payable upon the "sale or alienation" of the property.
A provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home.
A clause in the DEED OF TRUST or MORTGAGE that makes the loan non-assumable by providing the noteholder may call the loan immediately due and payable upon a sale or conveyance of an interest in the property. The FNMA/FHLMC form provides that a lease of more than three years or a lease with an option to buy also triggers this provision.
Standard language in a mortgage that states the loan must be repaid upon sale.
Provision in a mortgage or deed of trust which requires loan to be paid in full if property is sold or transferred.
A clause allowing the lender to demand payment of the entire loan balance upon sale or other transfer of title by the borrower to a third party.
A clause found in most mortgages, stipulating that should the borrower sell the property the entire loan amount will come due.
A clause that requires full payment of a mortgage or deed of trust when the secured property changes ownership.
A clause in a promissory note or deed of trust calling for automatic maturity and payoff of the loan in the event of a sale or transfer of title to real property. arnest Money Something given as a part of the purchase price to bind a bargain, such as a deposit.
A form of acceleration clause found in some mortgages, especially savings and loan mortgages, requiring the mortgagor to pay off the mortgage debt when selling the secured property, thus resulting in automatic maturity of the note at the lender's option.
A clause in a mortgage which requires that the mortgage be paid out in full upon the sale of the property against which it is secured. A mortgage with this clause may not be assumed by a purchaser.
A provision in a mortgage or deed of trust that gives the lender the option to require payment in full of the indebtedness upon transfer of title to the property (or any interest therein).
Mortgage provision stating that the entire note balance is due if the borrower sells the property.
A provision in a mortgage allowing the lender to demand repayment in full if the borrower sells the property securing the mortgage.
A mortgage clause that specifies that a mortgage loan must be paid in full when title to the mortgaged property is conveyed.
provision in a mortgage that allows the lender to call the mortgage due upon sale of the home.
A clause in the Deed of Trust that makes the loan non-assumable by providing the noteholder may call the loan immediately due and payable upon a sale or conveyance of the property. The FNMA/FHLMC Deed of Trust also prohibits a long term lease or a lease with an option to buy.