Acceleration Clause
A mortgage provision that lets the lender demand the entire unpaid balance at once when the borrower defaults or another triggering event occurs.
An acceleration clause gives the lender the right to call the full remaining balance due immediately upon a triggering event, most commonly the borrower's default. Without it, the lender could only pursue missed payments one at a time.
Acceleration is the step that usually precedes foreclosure. The due-on-sale clause is a specific acceleration trigger tied to transfer of the property.
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- Due-on-Sale Clause (Alienation Clause)
A mortgage clause that lets the lender call the full balance due if the borrower transfers the property without paying off the loan.
- Foreclosure
The process by which a lender forces the sale of property after default. Texas usually uses non-judicial foreclosure under a deed of trust.
- Mortgage
A security instrument that pledges real property as collateral for a debt. In Texas, lenders use a deed of trust to play this role.
This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.