What is an accelerations clause?

An acceleration clause is an important part of foreclosure law in California. It is a clause in a mortgage or deed of trust that states that if the borrower fails to make their payments, the lender can demand the full repayment of the loan. This clause accelerates the loan, and if the borrower cannot pay the full amount then the foreclosure process can begin. When a borrower has missed payments, the lender can activate the acceleration clause and demand the full repayment of the loan. However, the lender must provide written notice to the borrower before they can accelerate the loan. This notice is typically called a demand letter or a notice of default. The borrower must be given a reasonable amount of time to cure the default, usually 30 days. If the borrower still fails to make the full payment, then the lender can move to the next step and initiate foreclosure proceedings. An acceleration clause is an important aspect of foreclosure law in California. It allows the lender to reclaim their investment if a borrower is unable to pay back the loan. It also gives the borrower the opportunity to cure the default and avoid foreclosure proceedings. So it is important for borrowers to understand the acceleration clause and its implications before signing a mortgage or deed of trust.

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