Due-On-Sale Safeguards

What is the Due-On-Sale Clause?

Most standard residential mortgages contain a provision giving the lender the discretionary right to call the outstanding loan balance due upon conveyance of title. This is a contractual option, not a statutory crime or illegal act. Lenders are primarily motivated by performing monthly cash flow.

Key Safeguards We Implement

• Licensed Third-Party Servicing: Payments are automated through an escrow servicer, ensuring the lender never experiences late payments or administrative delinquency.
• Hazard Insurance Endorsement: Proper dual-named insurance certificates (naming both the buyer as insured and the underlying lender as additional loss payee) prevent policy cancellation alerts.
• Deed in Escrow / Cure Reserve: In the rare event a lender issues a notice of intent to accelerate, buyers maintain pre-agreed refinance reserves or deed escrow return protocols to protect the seller.