What acceleration clause requires the borrower to pay off the entire mortgage debt when the property is sold?

due-on-sale clause
The due-on-sale clause allows the lender to require immediate repayment of the mortgage balance when the mortgaged property is sold or transferred. Since a mortgage is a type of encumbrance or lien, lenders are automatically notified when a property that secures a loan is transferred.

What is the name of the clause in a mortgage that requires the mortgage balance be paid off when the property is sold?

Alienation Clause Terms An alienation clause requires a mortgage lender to be immediately repaid if an owner transfers ownership rights or sells a collateral property. These clauses are included for both residential and commercial mortgage borrowers.

What happens when your loan is accelerated?

An acceleration clause is a provision in your mortgage agreement that defines when and how the lender can “accelerate” the full repayment of the loan. In other words, it accelerates the repayment of what you borrowed plus the interest that accrues after the clause is triggered until full repayment occurs.

What is an acceleration clause in a loan?

An accelerated clause is a term in a loan agreement that requires the borrower to pay off the loan immediately under certain conditions.

What is the clause in a loan document describing certain events that would cause the entire loan to be due?

An acceleration clause or covenant is a contract provision that allows a lender to require a borrower to repay all of an outstanding loan if specific requirements are not met.

What is a provision in a mortgage enabling the lender to demand full repayment if the borrower sells the mortgaged property or partial interest in a mortgaged property?

What is a provision in a mortgage enabling the lender to demand full repayment if the borrower sells the mortgaged property or partial interest in a mortgaged property? An alienation clause requires the mortgagor to repay the entire balance of the loan if the property is sold, transferred, or otherwise abandoned.

What clause in a mortgage would require a borrower to pay a penalty for payments made ahead of schedule?

A prepayment penalty clause states that a penalty will be assessed if the borrower significantly pays down or pays off the mortgage, usually within the first five years of the loan. Prepayment penalties serve as protection for lenders against losing interest income.

When can a lender accelerate a loan?

An acceleration clause is a contract provision that allows a lender to require a borrower to repay all of an outstanding loan if certain requirements are not met. An acceleration clause outlines the reasons that the lender can demand loan repayment and the repayment required.

What does subordinate clause mean in real estate?

When you take out a mortgage loan, the lender will likely include a subordination clause. Within this clause, the lender essentially states that their lien will take precedence over any other liens placed on the house. A subordination clause serves to protect the lender in case you default.

What is a forfeiture provision?

Forfeiture is the loss of any property without compensation as a result of defaulting on contractual obligations, or as a penalty for illegal conduct.

What is an alienation clause?

An alienation clause, also known as a due-on-sale clause, is a real estate agreement that requires a borrower to pay the remainder of their mortgage loan off immediately during the sale or transfer of a property title and before a new buyer can take ownership.