Q: What do you mean by Due-On-Sale Clause?
Due-On-Sale Clause
A mortgage provision that affords the mortgagee the right to accelerate the mortgage debt and to foreclose if the mortgaged real estate is transferred without the mortgagee’s consent.
- Important for lenders because for sellers with lower-than-market interest rate mortgages on their property, assumability of the mortgage was a key to obtaining a higher price for the property.
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