Types of Clauses (Come back to)

Question 1

What is an acceleration clause?

Answer 1

A mortgage or trust deed stipulates that the entire debt is due immediately, if the borrower defaults under the terms of the contract.

Question 2

What is Due-On-Sale clause?

Answer 2

Also known as an alienation clause, is a loan stipulation that requires a borrower to pay the entire loan balance if the property is being sold.

Question 3

What is Subordination Clause?

Answer 3

Refers to the order of liens on a property.

Question 4

What is Release Clause?

Answer 4

Loan provision that allows an individual property in a blanket mortgage to be released from any liens by the lender.