Contracts
What is an 'acceleration clause' in an Oregon mortgage or deed of trust?
AA clause requiring faster amortization of the loan
BA provision allowing the lender to declare the entire loan balance due immediately upon borrower default or occurrence of specified events✓ Correct
CA clause granting the borrower the right to pay ahead of schedule
DA clause requiring the interest rate to increase automatically if the borrower is late
Explanation
An acceleration clause (or acceleration provision) is a standard provision in Oregon mortgages and deeds of trust that allows the lender to declare the entire loan balance immediately due and payable if the borrower defaults, transfers the property (due-on-sale clause), or violates other loan covenants. Acceleration is typically a prerequisite to foreclosure.
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Key Terms to Know
Deed of Trust
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Math Concepts
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