Property Ownership
A Connecticut home buyer takes title 'subject to' the existing mortgage. The lender has not given consent. The 'due-on-sale' clause in the mortgage would allow the lender to:
AApprove the new buyer automatically
BDemand immediate payment of the entire outstanding mortgage balance✓ Correct
CTransfer the mortgage to the buyer at the original terms
DReduce the interest rate as an incentive for the new owner
Explanation
Most mortgages contain a 'due-on-sale' clause that allows the lender to demand full repayment if the property is transferred without the lender's consent. Transfers 'subject to' an existing mortgage without lender approval can trigger this clause.
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