Acceleration Clause

Definition: Language in a mortgage or trust deed allowing the lender to immediately call the loan due and payable upon certain events such as selling the property to another person without paying off the lender or making major alterations to the property without notifying the lender. TIP: While alienation clauses can accelerate a loan, not all loan accelerations are called due and payable because of an alienation.

_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}