Where not talkin' about fast cars and cheetas.
When a motgage defaults, when the borrower fails to repay the loan or by trashing the covenants in the mortgage, the mortgagee (the lender) can contact the mortgagor (the borrower) and demand that the entire outstanding, unpaid loan balance, and not just the delinquint payments, have to be paid off.
The only alternative to this demand is the lenders demand to FORECLOSE !
What we call this action on the part of the lender is acceleration, which means that the due date of the loan is moved up to the present time and speeds of the repayment of the outstanding balance of the loan which is in default.
What give the mortgagee the right to make this demand is a provision written into the mortgage which is known as an acceleration clause.
This gives the mortgagee the right to demand immediate payment in full in the event of a default in the loan payment.
What kinds of experiences have seen with your clients and customers ?
What are the alternatives when the total outstanding balance of the loan becomes due and payable because the lender has exercised the right to enforce the acceleration clause in the mortgage?
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