Beware the Alienation Clause

You are probably wondering what an alienation clause in a mortgage could possible be. Well, it has to do with the sale of the property. Many loans, particularly adjustable rate mortgages, are assumable. This means you can sell your property off to someone and they can take over your mortgage if they meet certain requirements. Alienation clauses prohibit this. These clauses essentially state that if you give up ownership of the home, the mortgage comes due immediately. Such a clause obviously limits your options when it comes time to get out from under the home.