asked 96.1k views
5 votes
Which of the following is NOT typically allowed in a mortgage agreement unless specified in the mortgage document?

A. Renewal
B. Pre-payment
C. Transfer
D. Postponement

asked
User Sgjesse
by
8.5k points

1 Answer

2 votes

Final answer:

Transfer of a mortgage is not typically allowed unless explicitly stated in the mortgage document, due to the presence of due-on-sale clauses. Pre-payment, postponement, or renewal are not usually restricted but can vary by agreement.

Step-by-step explanation:

The option that is NOT typically allowed in a mortgage agreement unless specifically stated in the mortgage document is C. Transfer. Mortgage agreements usually include clauses that require the lender's consent before the borrower can transfer the mortgage to another party. This is known as the due-on-sale clause. Such clauses are intended to protect the lender by ensuring that the party responsible for repaying the loan is reliable and creditworthy. It's less common for mortgage agreements to restrict pre-payment or postponement, although some may have penalties for pre-payment. Renewal options might be included but aren't restricted by default.

answered
User Benjamin Dobell
by
8.8k points
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