Acceleration clause

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Updated: 3/27/2003 4:09 pm
An acceleration clause in a mortgage allows the lender to demand immediate payment of the entire balance remaining on the note if the borrower misses payments, or if the borrower sells the mortgaged property. Without this clause, the lender can only foreclose on the payments that have come due and not been paid. Thus, knowing that the lender has the option of calling the entire loan balance due upon default, the borrower is more likely to make his or her payments on time. For more information on acceleration clauses, contact a financial or real estate professional.

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