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Simple English definitions for legal terms

due-on-encumbrance clause

Read a random definition: exemption clause

A quick definition of due-on-encumbrance clause:

Due-on-Encumbrance Clause: A rule in a mortgage agreement that allows the lender to demand full payment of the loan if the borrower puts additional mortgages on the property without the lender's permission. This means that if the borrower tries to borrow more money against the property, the lender can require them to pay off the entire mortgage. This clause is regulated by federal law and is designed to protect the lender's investment in the property.

A more thorough explanation:

A due-on-encumbrance clause is a part of a mortgage agreement that allows the lender to demand full payment of the loan if the borrower puts additional liens or mortgages on the property without the lender's approval.

For example, let's say you have a mortgage on your house, and you decide to take out a second mortgage without telling your original lender. If your mortgage agreement has a due-on-encumbrance clause, your lender can demand that you pay off the entire mortgage immediately.

Another example is if you want to sell your house, but you still have a mortgage on it. If the buyer wants to assume your mortgage, but your mortgage agreement has a due-on-encumbrance clause, your lender can demand that the buyer pays off the entire mortgage instead of assuming it.

The due-on-encumbrance clause protects the lender's interest in the property and ensures that they have the first claim on the property's value. It also prevents the borrower from taking on additional debt that could affect their ability to repay the mortgage.

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I’ve heard this song before!!
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I like curse freaks too
trees1234567
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chag!!! hope you’re happily enjoying your summer before you kill it at UT
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I love that you know that reference
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17:08
comes with the territory of being a girl with big eyes and art hoe tastes
I'm done trying to get into law school. Just going to go play dead in some grass somewhere. Good luck all.
KnowledgeableRitzyWasp
17:10
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KnowledgeableRitzyWasp
17:11
don’t surrender
Tom is me in that I am also a hopeless romantic
babybunny
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babybunny
17:17
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17:18
got home and the ducky is still so cute i love life
@babybunny: yeah... I learned that after my last heartbreak which culminated in my lung randomly collapsing
Plant my feet and bitterly breathe up the time that's passing
anyone have advice on submitting an additional rec letter after WL even if the admissions officer said it's not necessary? rec letter is from someone affiliated with the school..
I would still do it
18:01
not someone claiming they got accepted from the SMU WL
One of my waitlist allowed me to submit a fifth letter of rec after submitting 4 in my initial applicstion
18:03
I just hope SMU gives me a chance once my test results post :’)
If it’s another prof, I would ask the law school if it’s okay if the new recommender submitted another letter directly to admissions team, if they say yes definitely go for it
18:05
I only have one LOCI for them left and I’m waiting to use it when my last results release, otherwise I would
manifestmoreadmissions
21:02
valley SMU would be so lucky to have you you would be such an asset
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