Finance
In Michigan, a 'due-on-sale clause' (alienation clause) in a mortgage requires that:
AThe property be sold within a specified period
BThe entire loan balance becomes due upon sale or transfer of the property without lender consent✓ Correct
CThe seller pay off the mortgage 30 days before closing
DThe buyer assume the existing mortgage in all cases
Explanation
A due-on-sale clause requires the borrower to pay off the mortgage in full if the property is sold or transferred without the lender's approval. This prevents buyers from assuming loans without lender consent and allows lenders to renegotiate rates when properties sell.
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