Which mortgage clause allows a lender to regain their investment ifa borrower does not pay his payment?a. acceleration clause b. alienation clause c. due on sale d. defeasance clause

Respuesta :

Option(A) is the correct answer.

Acceleration clause allows a lender to regain their investment if a borrower does not pay his rent.

What is acceleration clause in real estate?

A loan agreement's "accelerated provision" specifies circumstances under which the borrower must repay the loan in full right away. When the borrower substantially violates the terms of the loan arrangement, an accelerated clause is often triggered.

For instance, if the borrower skips too many payments, the acceleration provision in most mortgages kicks in. Commercial and residential mortgages are the ones that typically have acceleration clauses. Some leases may also include them.

The borrower may be permitted to repay the loan in full before the loan's maturity date, according to an accelerated provision.

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