Can My Family Take Out a Mortgage for Me and Then Transfer the Deed to Us??
Full Question:
Answer:
We suggest contacting the lender to find out whether there is a due on sale clause, and if so, whether they will consent to the transfer without accelerating the loan. If there is a mortgage on the property, the contract may violate a due-on-sale clause in the mortgage which the lender may or may not seek to enforce.
Most lenders require that the mortgage or deed of trust contain a due on sale clause. This is an acceleration clause in a loan, calling for payment of the entire principal balance in full, triggered by the transfer or sale of a property. Such a clause permits a secured mortgage lender (federal, state or private) to call the entire unpaid loan balance due and payable immediately if the property securing the loan is sold, transferred, traded, gifted or otherwise disposed of without the lender’s prior written consent.
