Finance
In Michigan, 'mortgage acceleration' occurs when:
AThe borrower makes extra payments to pay off the loan faster
BThe lender demands full repayment of the remaining balance due to a default or sale trigger✓ Correct
CThe interest rate increases rapidly
DThe loan is paid off ahead of schedule with a penalty
Explanation
Acceleration is triggered by a default or an alienation (due-on-sale) clause: the lender demands the entire outstanding principal balance become immediately due and payable. Most Michigan mortgages include acceleration clauses.
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