Finance
What is the 'due-on-sale' clause in a Nevada mortgage and what does it do?
AIt allows buyers to assume existing mortgages without lender approval
BIt is a clause that gives the lender the right to demand full repayment of the loan when the property is sold or transferred, preventing assumable loans without lender consent✓ Correct
CIt requires all mortgages to be paid in full within 30 years
DIt is a Nevada-specific requirement for seller-financed transactions
Explanation
A due-on-sale (acceleration) clause allows the lender to call the entire loan balance due when the property is sold or ownership is transferred. This prevents buyers from informally assuming low-rate mortgages without the lender's approval. Most conventional mortgages contain due-on-sale clauses. FHA and VA loans may be assumable, but lenders still typically require the new buyer to qualify.
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