Any of these arrangements triggers the due-on-sale clause in the seller's existing mortgage and thus the lender may call the loan due.
In the lending market of the 2010s, many observers believe that banks are not likely to enforce due-on-sale provisions unless they have another reason to call the loan due.
Virtually all mortgage loans made in the United States by institutional lenders in recent years contain a due-on-sale clause.
These clauses are meant to require the loan to be paid in full in the case of a sale or conveyance of interest in the subject property.
Many states had adopted laws that permitted existing loans to be assumed by buyers whether or not the lender was willing to agree.
Institutional lenders successfully lobbied Congress heavily to add Section 341a of the Act to federal law.
Similarly, transfer of the borrower's home to a spouse as part of a divorce or dissolution of marriage generally does not trigger a due-on-sale clause.