Law Commons^™

The Due-On-Sale Clause: A Marriage Gone Sour- A Checklist For The Practitioner, W. Wade Berryhill

University of Richmond Law Review

The problem begins simply enough. Soon moving to another city a homeowner negotiates and signs a contract for the sale of his present home. The contract provides that the purchasers are to assume the current mortgage with an interest rate of 91 %. The vendor and the purchasers notify the lender of the intended sale. Despite the fact that the proposed purchasers qualify as acceptable credit-risks, the lender informs the parties that the current mort- gage contains a "due-on-sale" clause and that he intends to accelerate the due date of the mortgage unless the purchasers agree to accept an increase …