Finance
A Minnesota borrower is told their loan has a due-on-sale clause. This means:
AThe loan is assumable by a new buyer
BThe full loan balance becomes due if the property is sold or transferred✓ Correct
CThe interest rate will increase if the property sells
DThe borrower must pay off the loan within 5 years of purchase
Explanation
A due-on-sale (alienation) clause requires the full loan balance to be paid when the property is sold or transferred. Most conventional mortgages contain this clause, preventing loan assumption without lender approval. In Minnesota, this means the seller cannot pass their mortgage to a buyer without the lender's consent.
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