Acceleration Clause

Posted by on May 10, 2010 in Glossary | 223 comments

This is a portion/clause contained in your mortgage that allows the bank to call in the whole balance due on the loan in the event of missed payments. Without this clause, the bank must declare a separate default for each missed payment as the payment is missed. An acceleration clause allows a missed payment to be considered a default of the whole note and mortgage, and allows the bank to call the full balance due.

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