(8) Clauses In A Mortgage Flashcards
Declares that if the mortgagor was to ever become delinquent in payments, that the entire balance of the mortgage note become immediately due and payable by foreclosing the property
Acceleration Clause
Demands full payment of the mortgage balance if the property is sold or the title transfers to a third party. This protects the lender from a third party with any credit risks
Alienation Clause (Due-on-Sale)
Usually written into the agreement permitting the lender to increase or decrease the agreed-upon-interest-rate
Escalation Clause
Usually used in junior or second mortgage to differentiate that a certain mortgage is subordinate to other(s). Allows first mortgage to be paid off first.
Subordination Clause
Terminates the rights of the lender when the debt is paid off
Defeasance Clause