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

A deed of trust with a due-on-sale clause is a legal document used in residential real estate in Oregon. It is a three-party agreement between the borrower, the lender, and the trustee. The borrower agrees to make monthly payments to the lender and transfers property ownership to the trustee. The trustee holds the title to the property until it is paid off. The due-on-sale clause states that when the borrower sells or transfers the property, the lender has the right to demand full repayment of the loan. The due-on-sale clause is beneficial to the lender because it ensures that they will receive their money, regardless of who owns the property. It also gives the lender more control over who is responsible for the loan. The clause also prevents the borrower from avoiding their debt by selling the property before the loan is paid in full. The due-on-sale clause is important to understand when buying a home in Oregon. It is important to make sure that any existing loan is paid in full before the property is transferred. If the loan has not been paid in full, the buyer will be responsible for the debt. It is also important to review the deed of trust to make sure that the due-on-sale clause is in effect. Understanding the terms of the deed of trust will help ensure that the buyer is protected and that the loan is satisfied when the property is sold.

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

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