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.
Quick flashcard
What does Acceleration Clause mean on the Texas real estate exam?
Answer: A mortgage provision that lets the lender demand the entire unpaid balance at once when the borrower defaults or another triggering event occurs.
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Acceleration Clause definition
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.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Financing & Settlement (7 of 80 National)
From definition to recall
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Try 5 free questionsThis 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.