Definition of nonassumption clause

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TeachMeFinance.com - explain nonassumption clause



nonassumption clause -- a provision of a mortgage contract that prohibits the assumption of the mortgage by a third party without the prior approval of the lender. See due-on-sale clause.

due-on-sale clause -- a clause in a mortgage contract providing that if the borrower sells or transfers any interest in the property, the lender has the right to demand the entire unpaid principal balance.


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