Word of the week

Due-on-sale provision: A provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage. 

Example: You sell your house and on the day of closing, your mortgage company requires you pay them off. You are not allowed to still have the mortgage if you no longer own the house.

This entry was posted in Home Buyer Information, Home Seller Information and tagged , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.