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What acceleration clause requires the borrower to pay off the entire mortgage debt when the property is sold?

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User Pbaldauf
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Answer: commercial mortgages and residential mortgages.

Step-by-step explanation:

An accelerated clause is a term in a loan agreement that requires the borrower to pay off the loan immediately under certain conditions. An accelerated clause is typically invoked when the borrower materially breaches the loan agreement. For example, mortgages typically have an acceleration clause that is triggered if the borrower misses too many payments. Acceleration clauses most often appear in commercial mortgages and residential mortgages. They also appear in some leases. When a lender invokes an acceleration clause, the borrower must immediately pay the unpaid balance of the loan’s principal, as well as any interest that accumulated before the lender invoked the acceleration clause. The borrower does not, however, have to pay the full amount of interest that would have come due had the loan been paid off normally. For example, most loans allow the borrower to accelerate the loan and pay off the loan early in a single lump sum to avoid paying interest for the remainder of the loan’s term.

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User Garrett Vlieger
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