Finance
In West Virginia, the 'due-on-sale' clause in a mortgage allows the lender to:
ARequire the borrower to pay additional points at sale
BDemand full repayment of the loan balance when the property is sold or transferred✓ Correct
CApprove or deny any future buyers
DReduce the interest rate when the property sells
Explanation
A due-on-sale (alienation) clause gives the West Virginia lender the right to call the entire loan balance due and payable when the property is sold or transferred. This prevents buyers from assuming loans without lender approval.
Related West Virginia Finance Questions
- A 'due-on-sale' clause in a West Virginia mortgage or deed of trust means:
- A West Virginia borrower has a gross monthly income of $5,000. Lender guidelines set a maximum housing expense ratio of 28%. What is the maximum allowable monthly PITI payment?
- A West Virginia buyer using a conventional conforming loan must meet standards set by:
- Under the Equal Credit Opportunity Act (ECOA), a West Virginia lender may NOT deny credit based on:
- The Community Reinvestment Act (CRA) is relevant in West Virginia because it:
- A West Virginia USDA Rural Development loan is designed for:
- A West Virginia homebuyer who pays 'discount points' at closing is paying:
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