What is an accelerations clause?

An acceleration clause is a type of clause in a foreclosure law that is found in a mortgage agreement in North Carolina. This clause states that if the borrower stops making payments, the entire amount of debt owed can become due immediately. This clause gives the lender the right to demand immediate payment on the entire amount and can result in foreclosure proceedings being initiated. Acceleration clauses normally state that if the borrower fails to make a single payment, the lender can declare the entire loan amount due and payable. This clause is often used by lenders to protect their investment in the property and to ensure that the loan is paid back in full as quickly as possible. It is important for borrowers to understand the terms of their mortgage agreement and the language in the acceleration clause as they could end up losing their home if they fail to make payments. If borrowers have questions about their agreement or the acceleration clause, they should speak to a qualified attorney or housing counselor and seek legal advice. This is the best way to ensure that borrowers understand their rights and obligations under the loan agreement and can avoid foreclosure.

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What is an accelerations clause?

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