The Due-On-Sale Clause is Enforceable in Texas

Analyzes the issue of whether a due-on-sale clause is enforceable upon the sale of the secured property without the lender’s consent. In this case the Texas Appeals Court held that the due-on-sale clause was enforceable upon sale of the secured property since it was sold without the lender’s consent. In this case the contract stated the sale had to be approved by the lender otherwise the note was immediately due. However, the author observes how the Court’s holding still does not solve the problems associated with the depressed housing market.