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What is the “Due on Sale” clause in a mortgage note?

April 26, 2017clause mortgage note

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What is the “Due on Sale” clause in a mortgage note?

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By virtue of this clause that is often set in some mortgages and land contracts, the Lender or the Mortgagee secures the right to get paid in full for the unpaid balance of the loan upon the sale or transfer of the property by the Borrower or Mortgagor to another legal entity.