Due on Sale / Transfer Provisions
Many among us owe money to a lender, secured by real estate. Think about buying a home and obtaining a mortgage or getting a HELOC (home equity line of credit). The property represents collateral, which the lender can acquire by foreclosure to repay the loan.
The lender has certain rights. These rights are set out in: (a) the promissory note, which is the document that contains the promise to repay the borrowed amount, with interest; and (b) the deed of trust or mortgage, the document which deals with the lender’s foreclosure rights.
Deed of trust v. mortgage? The instruments have different structures, and the deed of trust gives the lender a speedier