Definition of Acceleration Clause:
Acceleration Clauses in Orange County:
A contract provision that allows a Rancho Santa Margarita lender or any other Orange County lender to require a borrower to repay all or part of an outstanding loan if certain requirements are not met. An acceleration clause outlines the reasons that the lender can demand loan repayment. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the Rancho Santa Margarita Real Estate lender. Acceleration clauses are most commonly found in mortgage and real estate loans. Since these loans tend to be so large, the clause helps protect the lender from the risk of borrower default.