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Unformatted text preview: loan-lender/seller liable-lender makes the call whether it is by assumption or subject to-risk is that if buyer defaults, property is sold at auction for less than mkt value-the greater the spread btwn loan balance and sale price, the less the risk to the seller Insurance Clause-requires the borrower to maintain adequate insurance on the property-adequate- amount greater than or equal to the amount of the loan-you want mortgage value to cover value of land...
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- Spring '08