What is a mortgage acceleration clause?

A mortgage acceleration clause is a provision in a mortgage contract that allows the lender to demand the entire balance of the loan from the borrower if certain conditions are not met. This clause is used if the borrower is not meeting the payment requirements for the loan, such as not paying the monthly installments on time or not making the full payment of the loan. In California, the mortgage acceleration clause is usually found in the mortgage agreement, which is the contract between the lender and borrower. Depending on the terms of the mortgage agreement, the lender may be able to enforce the clause to demand the full balance of the loan, even if the borrower has not met the payment requirements in their contract. If the lender exercises the mortgage acceleration clause, then the borrower has a few options to respond. They can either pay the entire outstanding balance of the loan, or they can negotiate with the lender to make new payment arrangements. Additionally, the borrower could potentially take legal action against the lender to avoid paying the entire outstanding balance of the loan. Overall, a mortgage acceleration clause is a powerful legal tool that can be used by lenders to demand repayment of the full balance of a loan from a borrower. It should be taken seriously and borrowers should make sure to abide by the mortgage agreement they have signed in order to avoid invoking the clause and experiencing any unpleasant consequences.

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What is a mortgage acceleration clause?

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