Finance
A Maine property is subject to a mortgage that has a due-on-sale clause. If the seller transfers title without paying off the mortgage, the lender may:
AAutomatically release the mortgage
BDemand immediate full payment of the loan balance✓ Correct
CAllow the buyer to assume the loan at the original terms
DFile a lis pendens only
Explanation
A due-on-sale (alienation) clause allows the lender to demand full repayment of the loan if the property is sold or transferred. This prevents unauthorized assumption of loans at below-market rates.
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