Definition
A loan provision allowing the lender to demand the entire outstanding balance immediately if the borrower defaults on specified terms.
Example
After four missed payments the servicer accelerated the note, making the full $284,000 balance due rather than the arrears.
Related terms
- Accrued Interest
- Adjustable Rate Cap
- Adjustable-Rate Mortgage
- Amortization
- Annual Percentage Rate
- Assumable Mortgage
Frequently asked questions
What does Acceleration Clause mean in real estate?
A loan provision allowing the lender to demand the entire outstanding balance immediately if the borrower defaults on specified terms.
How is Acceleration Clause used in practice?
After four missed payments the servicer accelerated the note, making the full $284,000 balance due rather than the arrears.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.