Question

Which mortgage clause prevents someone from assuming a loan?

Answer 1

The  due  on  sale  clause,  prevent  someone   from  assuming  a  loan.This  a  clause  in  a  loan  or    promissory  that  require   the  full  balance   of  the  loan  be  called  due(repaid  in  full)  upon  transfer  or  sale  of  ownership  of  property used  to  secure  the  note.The  lender  has  the  right  to  call  the  note  due.

Answer 2

The mortgage that prevents someone from assuming a loan is the alienation clause. It is because not only it function of preventing an individual from assuming a loan but it occurs during the upon sale of the lender’s property in which makes the loan immediately in due.