Acceleration Clause

The clause in a mortgage, or deed of trust, that allows the lender to "accelerate" the payment schedule—demanding immediate payment of the loan principal. Standard residential mortgage loans do not allow unrestricted acceleration clauses; this clause is normally used by the lender to demand the entire balance due immediately if the borrower fails to meet loan obligations (i.e., default). For more information, see the

"Mortgage Deeds and Promissory Notes" article in the "Real Estate In-Depth" section.

Was this article helpful?

0 0
Real Estate Essentials

Real Estate Essentials

Tap into the secrets of the top investors… Discover The Untold Real Estate Investing Secrets Used By The World’s Top Millionaires To Generate Massive Amounts Of Passive Incomes To Feed Their Families For Decades! Finally You Can Fully Equip Yourself With These “Must Have” Investing Tools For Creating Financial Freedom And Living A Life Of Luxury!

Get My Free Ebook

Post a comment