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Due-on-sale clause - Wikipedia, the free encyclopedia
A due-on-sale clause is a clause in a loan or promissory note that stipulates that the full balance may be called due upon sale or transfer of ownership of the property used to secure the note. The ...
en.wikipedia.org/wiki/Due-on-sale_clause |
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Reason for the due-on-sale clause ... Neither can lenders tolerate making mortgage loans which will likely last seven years on average because of the due-on-sale clause, only to find that those mortgages are being passed onto subsequent buyers, thereby extending their terms which gives lenders negative spreads between...
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Dealing With the Due on Sale Clause - Part II by Bill Bronchick ... In my article There is No "Due on Sale" Jail, I outlined a basic strategy for using a revocable land trust to quietly circumvent the "due-on-sale" clause. The following is a strategy that can be combined to make a bundle of money with owner-carry mortgages...
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It is most important to understand here that the verbiage of a lender’s Due-on-Sale clause doesn't always convey exactly what we or our attorneys THINK it does ... Despite the due-on-sale clause and its implications in the creative real estate financing business, it is quite possible for one to take over the payments on...
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It still may be possible to legally avoid the enforcement of a due-on-sale clause in certain limited instances, albeit almost always in those situations where the clause contains ambiguous limitations or has not been carefully and comprehensively drafted by the lender.
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due-on-sale clause in the news ... non-assumption clause ... Under this clause, the full balance on mortgage must be paid when the property is sold and the new owner must negotiate a new loan at new (usually higher) interest rates.
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due-on-sale clause - definition of due-on-sale clause - A provision in a mortgage enabling the lender to demand full repayment if the borrower sells the mortgaged property. ... due-on-sale clause is ...
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