What is an accelerations clause?

An acceleration clause is a clause in a loan agreement that gives the lender the right to demand the full repayment of the loan immediately if the borrower fails to make a payment or violates certain terms of the loan agreement. In Washington, an acceleration clause is typically included in a mortgage agreement, allowing the lender to foreclose on the property if the borrower defaults on the loan. This clause often serves as a last-resort measure as it can have serious financial implications for the borrower. In the event of a foreclosure, the borrower will likely be subject to foreclosure fees and may even have to pay back the entire balance of the loan in order to keep the property. Additionally, foreclosure can be a lengthy and complicated process, taking months to complete and decreasing the borrower’s credit score in the process. Therefore, it is important for borrowers to be aware of the potential implications of an acceleration clause in their mortgage agreement in order to avoid any unpleasant surprises in the future.

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What is an accelerations clause?

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