What is Mortgage Acceleration Clause?

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A mortgage acceleration clause is a provision in a mortgage contract that gives the lender the right to demand that the borrower pay off the entire outstanding balance of the loan immediately, if the borrower defaults on the loan. This means that if the borrower misses a payment or violates any other terms of the loan agreement, the lender can call the loan due and payable in full, even if there are many years remaining on the loan. This is a powerful tool for the lender to protect their investment and can be a significant risk for the borrower.

Real Estate Glossary

What is Mortgage Acceleration Clause?