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Dying with a mortgage can potentially cause problems for your heirs. A little planning can help them deal with the headaches.
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Due on Sale Clause
Most Mortgages have a due on sale clause. However, The Garn-St. Germain Depository Institutions Act of 1982 allows your heirs, if they are closely related to you, to take over mortgage payments. However, if your heir is not related to you, and your contract has a due-on-sale clause, the mortgage lender has the right to ask for the mortgage balance due.
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