What is a deed of trust with a due-on-sale clause?

A deed of trust with a due-on-sale clause is a type of mortgage document commonly used in Alaska when purchasing residential real estate. The document outlines the conditions for taking out a loan for the purchase of a property and states that the loan must be paid in full if the property is sold or transferred to another party. When a buyer takes out a loan to purchase a property, they sign a deed of trust with a due-on-sale clause stating that the loan must be paid in full if the property is sold or transferred to another party. This clause protects the lender as they can be sure that the loan will be repaid in full if the borrower transfers the property. The due-on-sale clause benefits the lender, but it can also benefit the borrower. This clause ensures that the property can’t be transferred for less than its appraised value, protecting the borrower’s equity in the property. The due-on-sale clause also prevents borrowers from transferring a property without the lender’s prior approval. This protects the lender from a situation in which the borrower stops making payments on the loan, transfers the property to another party, and leaves the lender with no recourse. In summary, a deed of trust with a due-on-sale clause is a type of mortgage document commonly used in Alaska that outlines the conditions for taking out a loan for the purchase of a property and states that the loan must be paid in full if the property is sold or transferred to another party.

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What is a deed of trust with a due-on-sale clause?

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