A due-on-sale clause in a West Virginia mortgage:
Correct Answer
A) Allows the lender to demand full repayment if the property is transferred
A due-on-sale (alienation) clause gives the lender the right to call the entire loan balance due and payable if the property is sold or transferred without the lender's consent. This prevents unauthorized loan assumptions.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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