Also known as: acceleration doctrine · accelerate · accelerated · accelerating · acceleration · acceleration of remainders
Written by attorneys · grounded in primary & secondary sources — see below
A mortgagee's contractual or statutory right to declare the full unpaid balance of a secured obligation immediately due upon the mortgagor's default under the mortgage or note. The right arises when the mortgagor fails to pay an installment or breaches a covenant. Exercise of the right must be in good faith and may require notice or an opportunity to cure before foreclosure can proceed.
Diana Delgado stopped making monthly payments on her home loan after losing her job. The lender sent written notice declaring the entire remaining balance due at once. Because the note contained an acceleration clause, the lender could immediately begin foreclosure proceedings rather than sue for each missed installment separately.
Darius Dixon received a foreclosure notice stating the full debt had been accelerated. He tendered only the past-due installments plus costs. The tender failed to reinstate the loan because it did not include all amounts that would have been due absent acceleration under the uniform act.
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Derek Douglas missed one installment on a promissory note payable in monthly sums. The holder did not accelerate the due date. The instrument therefore became overdue on the missed payment and stayed overdue until Derek cured the default.
Destiny Davis sold her mortgaged house to a buyer without obtaining the lender's consent. The mortgage contained a due-on-sale clause. The lender exercised its right to accelerate the debt, requiring the buyer or seller to pay the full balance or face foreclosure.
Delilah Duran attempted to cure a monetary default after acceleration. She tendered the full accelerated amount but had not yet repaired the property as required by the mortgage covenant. The lender rejected the tender because she had not performed the non-monetary duty that would have been due without acceleration.
Dakota Industries missed an interest payment on a note but continued paying principal installments on time. Because the due date for principal had not been accelerated, the instrument did not become overdue solely from the interest default.
The mortgagor must pay or tender all amounts that would have been due at the time of tender in the absence of acceleration and must perform any other duty that would have been due without acceleration. The tender must occur before foreclosure or within any statutory cure period.
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No. When principal is payable in installments and the due date has not been accelerated, the instrument becomes overdue only upon default in an installment and remains overdue until that default is cured. Acceleration is required to make the remaining principal due immediately for overdue status.
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Yes. A due-on-sale clause permits the mortgagee to accelerate the debt when the mortgaged property is transferred without consent. Federal law generally enforces such clauses, allowing the lender to demand full payment or foreclose.
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