A mortgage often includes a clause requiring the lender's consent before another borrower may assume the mortgage. This clause is called a/ an:

A. power of sale clause
B. subordination clause
C. defeasance clause
D. alienation clause (due-on-sale clause)

Answer: D. Alienation clause (due-on-sale clause)
an Alienation clause prevents assumption without the lender's consent by stipulating that the loan balance is due and payable in full if the property is sold.

Business

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