easy · National Real Estate Exam financing
If a borrower fails to make payments and the lender invokes the 'due-on-sale' clause because the borrower sold the house, the lender is effectively:
- Granting the buyer a formal loan assumption
- Extending the loan term further out for the new buyer
- Forgiving the remaining balance owed on the original debt
- Requiring the loan to be paid in full immediately
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