Assume a nonassumable mortgage

Most non-FHA/VA long-term fixed-rate residential mortgages include a so-called "due on sale" clause. This clause reads (in part) as follows:

K 18. If all or any part of the [mortgaged] property or an interest therein is sold or transferred by the Borrower without Lender's prior written consent... Lender may, at Lender's option, declare all the sums secured by this Mortgage to be immediately due and payable.

Few people read the precise wording of this clause. Yet that wording proves more favorable than commonly believed.

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