Legal requirements for a mortgage agreement.

[flippinout]

First of all, the agreement has to be in writing. Then the property being sold has to be adequately identified.

Then there has to be complete identification of the borrower, lender, and trustee if any.

Proper wording to pledge a security interest has to be made.

Finally it has to be signed by mortgagors.

And if there was not a "due on sale" clause, the owner-borrower could sell the pledged property without paying off the loan. The life of the loan is thereby continued even though ownership has changed.

Any sale will accelerate the due date of the principal balance.

[badmomma]

Interesting. I had not heard of the due on sale clause. I will have to read my mortgage agreement and see if it is in there. I would love to sell my home. But with what we owe on it,it may be safer to wait. The contracts are always so long and you are pushed for time so I don't think anyone really reads the whole thing before signing it. Perhaps it would be best to make them wait until we have.