Written by attorneys · grounded in primary & secondary sources — see below
A contractual right allowing a mortgagee to declare the entire unpaid balance of a loan immediately due and payable upon the mortgagor's default under the mortgage or note.
Anchor Bank holds a mortgage on property owned by Alexandra Armstrong. After Armstrong misses three monthly payments, Anchor Bank mails written notice declaring the full unpaid principal due immediately. The notice satisfies the good-faith requirement and starts the foreclosure process for the accelerated amount.
Artemis Logistics defaults on its mortgage held by Apollo Energy. Before any acceleration notice takes effect, Artemis tenders the exact amounts that would have been due absent acceleration plus foreclosure expenses. The tender reinstates the original payment schedule under the uniform act.
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Aisha Ahmed defaults on payments secured by a mortgage from Arcadia Retail. To cure after default but before acceleration becomes effective, Ahmed must perform every other duty required by the mortgage agreement as if no acceleration had occurred. Compliance with those duties allows reinstatement of the original terms.
The mortgagor must tender all amounts that would have been due at the time of tender in the absence of acceleration, perform any other duties required by the mortgage agreement as if no default or acceleration had occurred, and pay specified foreclosure expenses.
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Mailing alone may not suffice if the mortgagor never receives actual notice of the acceleration page. Delivery requires that the notice be reasonably calculated to reach the mortgagor, and some courts examine whether the borrower had meaningful awareness before the acceleration takes effect.
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A mortgagor may defeat acceleration by paying or tendering the amount due at the time of tender in the absence of acceleration and by performing any other duty in default, provided the action is authorized by statute, the mortgage documents, waiver, or conduct making acceleration unconscionable.
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