Acceleration Clause, Definition
Posted by Michael George in Mortgage Definitions / Glossary on Mar 20th, 2011In every mortgage note, there is some proverbial fine print, called an acceleration clause. This means that the lender can “accelerate” your mortgage note due date, if you violate the terms of your note. Another way to put this is that they can demand payment for the total amount of your mortgage, if you violate your contract.
For example, if you do not pay your mortgage for several months, the bank will accelerate (demand immediate payment) before they foreclose.
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