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.
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.
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 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 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.
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 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.