Latest Answer: HI, It is worth pointing out that there was a time that the owner of property could sell property and freely transfer the mortgage to the new owner. Due to the modernization of the credit market, lenders want to know who owes them money. Since the new owner might not be as creditworthy as the original owner or mortgagor, lenders now insert a due on sale clause. This clause requires that a mortgage be paid off when the underlying property is sold. Nowadays, the seller sometimes finances some of the buyer needs and sometimes a relative or friend might give the buyer a second loan on top of the bank loan. Otherwise, the mortgagee is always a financial institution. So, a mortgagee can not be a allottee. But if you unable to pay pay the dues then mortgagee has the rights to sell your property.