Deed/Title Change and Loan Acceleration

Get Legal Help Today

 Secured with SHA-256 Encryption

Deed/Title Change and Loan Acceleration

If a property is sold ‘subject to existing liens’ and the deed is changed to
buyers name, is the existing mortgage accelerated?

Asked on May 29, 2017 under Real Estate Law, Maryland

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

The full balance of a mortgage loan may be accelerated and called due (i.e. requiring repayment in full) upon sale or other conveyance of the property that is used to secure the promissory note. This is known as the "due on sale clause". The lender has the right, but not the obligation, to call the note due under this circumstance. In the U.S. virtually all mortgage loans contain these clauses (as oppossed to assumable mortgages which allow transfer of ownership without such acceleration). 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption