What is an accelerations clause?

An acceleration clause in Arizona foreclosure law is a clause in a mortgage that stipulates that the entire balance of the mortgage can become due and payable if certain conditions are met, such as when a borrower fails to make their mortgage payments. In other words, the clause allows the lender to “accelerate” the repayment of the loan and become due immediately. This means that the borrower no longer has the option to make monthly payments, and must instead pay off the entire balance of the loan in one lump sum. The acceleration clause is a key component of foreclosure law in Arizona, and is often included in mortgages to protect lenders from borrowers who are unable or unwilling to keep up with their payments. This helps to ensure that the lender will receive the full amount of the loan, regardless of any unforeseen circumstances. In some cases, a lender may choose to forego the acceleration clause, though this is rare. In Arizona, lenders must provide borrowers with a 30-day notice prior to invoking the acceleration clause. This allows the borrower some time to find other ways to pay off the loan, such as by refinancing. If the borrower fails to respond to the notice, the lender can then move to proceed with the foreclosure process. Ultimately, by understanding the details of an acceleration clause, borrowers can help to prevent the loss of their property.

Related FAQs

Can a lender pursue a deficiency judgment in a foreclosure?
Can I buy back my home after a foreclosure sale?
What is foreclosure?
What are the foreclosure laws in my state?
What is a deed-in-lieu of foreclosure?
What is a foreclosure sale?
What are the differences between a foreclosure and a short sale?
Can I transfer ownership of my home to avoid foreclosure?
Can I file an objection to a foreclosure sale?
Are there defenses to a foreclosure?

What is an accelerations clause?

Related FAQs

Related Blog Posts