Finance
A Michigan borrower's mortgage note includes a due-on-sale clause. This means:
AThe property must be sold within 5 years
BThe full loan balance becomes due if the property is sold or transferred✓ Correct
CThe buyer must assume the mortgage upon purchase
DThe lender may call the loan due at any time
Explanation
A due-on-sale (alienation) clause requires the entire loan balance to be paid when the property is sold or transferred to a new owner, preventing assumability without lender approval.
Related Michigan Finance Questions
- In Michigan, a mortgage that is assumable allows:
- A Michigan borrower's 'front-end' DTI ratio of 28% means:
- In Michigan, 'title insurance' for the lender protects against all of the following title defects EXCEPT:
- Which type of mortgage loan is NOT insured or guaranteed by a government agency?
- In Michigan, a 'wraparound mortgage' involves:
- In Michigan, a mortgage lien is created when:
- In Michigan, a 'jumbo loan' exceeds:
- Truth in Lending Act (TILA) disclosures in Michigan require lenders to disclose the:
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →