Finance
What is 'mortgage acceleration' and when can a Pennsylvania lender invoke this right?
AA lender's ability to process Pennsylvania mortgages faster than the national average
BA lender's contractual right to demand immediate repayment of the entire outstanding loan balance upon the borrower's default or upon sale/transfer of the property✓ Correct
CA program allowing Pennsylvania borrowers to pay off mortgages ahead of schedule without penalty
DThe increase in mortgage applications during spring real estate season in Pennsylvania
Explanation
An acceleration clause (due-on-default or due-on-sale clause) allows the lender to declare the entire mortgage balance immediately due and payable upon specified triggering events — typically: borrower default (missed payments), unauthorized transfer of title (sale without lender approval), or certain refinances. In Pennsylvania judicial foreclosure, the lender accelerates the debt before filing suit. Due-on-sale clauses are enforced under the Garn-St. Germain Act with limited exceptions.
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