Legal Question in Real Estate Law in Arizona
Transfer of Property
Our trust deed states ''if all or any part of the property or any interest in the property is sold or transfered without lender's prior written consent, lender may require immediate payment in full of all sums secured by this security instrument. However, this option shall not be exercised by lender if such exercise is prohibited by applicable law.'' We live in Arizona. Under the law, is the lender prohibited by exercising the above. If they are not prohibited what happens if we don't pay in full? Could they attach a lein to our name?
2 Answers from Attorneys
Re: Transfer of Property
This is called a "due on sale clause." It's a standard term in most deeds of trust. It's enforceable unless one of the exceptions applies. See:
http://www4.law.cornell.edu/uscode/uscode12/usc_sec_12_00001701---j003-.html
If the lender demands payment under this clause, and you don't pay, then the lender will foreclose.
Re: Transfer of Property
The lender can accelerate the loan and demand that you pay in full. If you fail to pay, they can foreclose the lien and sell the house at auction. The lien is attached to the property and is the obligation of the original borrower and any deficiency, if applicable, would be sought from him or her.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
