What Is a "Due on Sale" Clause in a Mortgage?

Answer Virtually all mortgages contain a due on sale clause. A due on sale clause gives the lender a mechanism to prevent a property purchaser from assuming the mortgage. Most lenders base underwriting de... Read More »

Top Q&A For: What Is a "Due on Sale" Clause in a Mortgage

What is a mortgage short sale?

A short sale occurs when the mortgage lender accepts less than the full amount owed on the home as a payoff. It can be a useful way to avoid bankruptcy or foreclosure, but it's often a difficult an... Read More »

How to Qualify for an FHA Mortgage After a Short Sale?

Qualifying for an FHA mortgage after a mortgage short sale is possible. But your ability to get a mortgage insured by the Federal Housing Administration depends largely on how you managed your prev... Read More »

Does a short sale eliminate a second mortgage?

A short sale does not eliminate a second mortgage unless the sales price covers the amount owed. If a balance is still owed after the short sale, the second mortgage lender may seek a deficiency ju... Read More »

What Happens to a Second Mortgage on a Short Sale of a Home?

A short sale is a negotiation with a mortgage company for a homeowner to sell a home short of the total amount that he owes. Short sales are common for homeowners with little to no equity in a prop... Read More »