What is a mortgage acceleration clause?

A mortgage acceleration clause is an important part of a mortgage contract in North Carolina. This clause gives the lender the right to require borrowers to pay off the entire mortgage loan immediately if they fail to make payments or violate other terms of the mortgage contract. This clause is often used by lenders to ensure that they are able to recover the loan amount in the event of default. The acceleration clause can be triggered for a variety of reasons, including late payments, failure to keep up with required insurance or property taxes, transferring the title to another party, or selling the property before the loan has been paid off in full. If a borrower fails to meet any of the obligations outlined in the clause, the lender will demand that the entire loan balance be paid immediately. In North Carolina, a mortgage acceleration clause is an important element of any mortgage contract and can be the difference between being able to keep or losing a property in the event of default. It is important for borrowers to understand the terms and conditions of their mortgage contract prior to signing it, as this clause can be difficult to get out of once it has been activated.

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What is a mortgage acceleration clause?

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