What does the mortgage loan demand feature include?
Answer:The mortgage loan demand feature gives the lender the right to ask for full loan repayment for any reason. If your agreement includes such a feature, you would like to explore all the sections pertaining to it.
A demand feature is even more lender protecting than the due on sale and acceleration clauses, since lenders are enabled to even raise your interest rates, or else... They could threaten to call the loan even if the borrower is not selling.
Sometimes, due on sale and acceleration clauses are referred to as demand clauses. With a due on sale option the loan is due in full at house sale, as the lender would like to be repaid rather than have the loan transferred to the new buyer. The acceleration clause allows for calling the loan any time any of the agreed upon terms is violated by the borrower.
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