As a private mortgage loan servicing company, we're always on the lookout for clauses that could clobber our clients. This article by Thomas Standen Sr. highlights some of the clauses that could trip up borrowers, and we wanted to share it with our clients to help them avoid any potential pitfalls.
Standen starts off by discussing the "due-on-sale" clause, which could be used to call in a loan if the property is sold. He then moves on to discuss hidden fees, pre-payment penalties, and other clauses that could be used to trap unwary borrowers. We agree with Standen that it's important for borrowers to be aware of these clauses and to understand how they could be used against them. We'll continue to keep an eye out for any changes or updates to these clauses, and we'll make sure our clients are always well-informed.