What is an accelerations clause?

An acceleration clause is a term in a mortgage contract that allows a lender to immediately demand full payment of the loan balance in the event of a borrower’s default. In other words, if the borrower fails to make payments or make payments on time, the lender can make an acceleration demand, which requires the borrower to pay off the entire balance of the loan. This is usually done in the event of a foreclosure in Florida when the borrower is unable to make full payment on the mortgage. An acceleration clause essentially puts the borrower on notice that failure to make payments on time or in full can result in the entire balance of the loan becoming due and the lender being able to initiate foreclosure proceedings. In the event the borrower still fails to make payments, the lender can initiate foreclosure proceedings in order to recover the full balance of the loan. In summary, an accelerations clause is a term in a mortgage contract that allows a lender to demand full payment of the loan balance if the borrower defaults on payments or is unable to make payments on time. In the event of an acceleration, the borrower may be forced to pay off the full balance of the loan or face foreclosure proceedings.

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What is an accelerations clause?

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