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Re: Not exempt from the due-on-sale clause.In Reply to: Not exempt from the due-on-sale clause. posted by Ward-CA- on June 11, 2003 at 6:27 PM Ward, Doesn't this Q&A at http://www.legalwiz.com/board.htm suggest otherwise? 29. Can a junior lien holder foreclose without triggering a due-on-sale on the senior mortgage? - Top The answer is "yes." Several court cases considered the issue and reasoned as follows: if a mortgage lien permits the borrower to further encumber the property with junior liens (ie, a 2nd mortgage), the the default and foreclosure of a junior lien is a reasonable consequence thereof. Thus, a 2nd lien holder can foreclose, take title subject to the 1st mortgage, and the due-on-sale has not been triggered. - Updated: July 12, 2002 David
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