Alienation Clause
A clause in a mortgage contract that requires full payment of the balance of a mortgage at the lender's discretion if the property is sold or the title to the property changes to another person. Nearly all mortgages have an alienation clause. Investopedia Says:
An alienation clause protects a lender by preventing a borrower from assigning debt without the lender's approval. An alienation clause protects the lender from credit risk of the original borrower, or third-party credit risk if the original borrower assigns the debt to another party. Related Terms:
Combined Loan To Value Ratio - CLTV Ratio
Credit Risk
Debt-To-Income Ratio - DTI
Gross Debt Service Ratio - GDS
Mortgage |