what is demand clause?

Hi Christopher,

A Demand Clause is a clause stated in the mortgage note which permits the lender to demand repayment of the outstanding loan balance for any reason except in the following cases:

1. The consumer getting the loan commits a fraud.

2. The consumer fails to repay the loan in time.

3. The borrower has adversely affected the creditor's security for the loan or any right of the creditor in such security. The Demand Clause is stated in the Truth in Lending Disclosure.

There is a discussion on the subject "Are Due on sale and Demand clause same?" in our community forums. Please refer it to know more on demand clause.

Please write back to us with further queries.

Regards
Jessica

what is a mortgage clause

Hi uphidodge,

Mortgage clause is a policy to protect the mortgagee under certain conditions in case the insured fails to comply with the policy conditions.

Regards,
James Hogg

Hi uphidodge,

Welcome to MortgageFit Forums.

As James rightly said, Mortgage clause also known as mortgagee clause or loss payable clause is a policy to protect the interests of the bank, Mortgage Company or any other lender who holds the mortgage on the property covered under your homeowner?s policy.

Hope this information helps you.

Feel free to post if you have any more doubts.

God bless you.

For MortgageFit,
Samantha

Fire insurance policy on home taken after July 1, 1989 by a mortgagor in a deed of trust shall have attached the following mortgage clause (under section 83-13-9):

• Loss or damage under this policy shall be payable to mortgagee.
  
  
• The mortgagee shall notify the company of any change of ownership otherwise the policy shall be void.
  

Hi helping user,

Welcome to MortgageFit Forums.

We would like to have you as our member so that our community may get more and more valuable suggestions in need.

God bless you.

Thanks,
Samantha