The sale and resale of the same land and the same home is inherently unproductive, and means the bank can usually recover the value of the mortgage.

As one would expect; in an IO mortgage the borrower isn't paying down principal, so the only way to come out ahead on the sale of the home is in the event of a substantial price increase.

In the case of transfer-in, sale, replacement, mortgage, guarantee or seal up of any fixed assets under construction, an explanation thereon must be given.