Acceleration Clause

This clause is usually found in most mortgage documents. Basically, it allows the mortgage lender to demand all money owed by the homeowner / borrower in the event of certain events (such as default).

For example, if a borrower defaults (does not pay) on the mortgage loan, then the acceleration clause gives the mortgage lender legal rights to demand all money owed by the homeowner. This is often one of the first steps in the foreclosure process, and is thus a way for the lender to document the borrower's default (think "paper trail").

Learn more about the various terms associated with home foreclosure in our glossary.