Posted by Jeff M on February 10, 2002 at 07:48:14:
I am no expert, but I read part 1 as simply saying that if you are in arrears with your interest payments on the loan, and then attempt to prepay, the lender will apply the prepayment FIRST to the interest arrears, and then to principle reduction. Part 2 I have no idea of. Part 3 is, I believe, a “due on sale” clause, which means that if you sell the property, the lender has the right to demand immediate payment of the ful amount of the loan. There may be places where this is illegal, and “Applicable Law” would prevent it, but I don’t know of such places. Part 4 I have no idea. Good luck!