Legal Definitions - direct order of alienation

Definition: Direct order of alienation is a principle in real estate that requires a grantee who assumes the debt on a mortgaged property to pay the mortgage debt if the original mortgagor defaults.

Example: Let's say John owns a house with a mortgage of $200,000. He sells the house to Jane, who agrees to take over the mortgage payments. However, if Jane fails to make the payments and the bank forecloses on the property, the bank can go after John for the remaining balance of the mortgage. This is because of the direct order of alienation, which makes John responsible for the debt even though he no longer owns the property.

Explanation: The example illustrates how the direct order of alienation works in practice. When a grantee assumes a mortgage, they become responsible for the debt if the original mortgagor defaults. This means that the lender can go after the grantee for the remaining balance of the mortgage, even if they no longer own the property. The direct order of alienation protects the lender's interests and ensures that the mortgage debt is paid off, regardless of who owns the property.