Finance
A Wyoming property owner receives a demand from their lender that the mortgage be paid in full under a 'due-on-encumbrance' clause. This occurred because the owner:
AMade an extra principal payment
BObtained a second mortgage without the first lender's consent✓ Correct
CSold the property to a new buyer
DFailed to pay property taxes
Explanation
A due-on-encumbrance clause requires the borrower to notify or get consent from the first lender before placing additional encumbrances (second mortgages, liens) on the property. Violating this clause can trigger acceleration of the first mortgage.
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