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Shalnov [3]
3 years ago
7

What covenant in a deed of trust document states that if the borrower violates any of the covenants of the contract, the benefic

iary may call for payment of the loan in full and the trustee may sell the property after he or she has filed all the proper notices?
Social Studies
1 answer:
Margarita [4]3 years ago
8 0

Answer:

Acceleration

Explanation:

An acceleration clause is a contract stipulation that give power to a lender to necessitate a borrower to repay all of an outstanding loan if certain clauses are not met. An acceleration clause outlines the grounds that the lender can claim loan repayment and the repayment requirement.

This type of clauses are very popular in mortgage loans and it helps to reduce the risk of default for the lender. They are in most cases based on payment delinquencies but they can be utilized for other occurrences as well. In most cases, an acceleration clause will necessitate the borrower to instantly pay the full balance owed on the loan if any of the loan terms have been violated. With complete payment of the credit the borrower is relieved of any further interest payments and basically pays off the loan early at the time the acceleration clause is invoked.

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