Contracts

An 'acceleration clause' in a South Carolina mortgage allows the lender to:

AIncrease the interest rate if the borrower misses a payment
BDemand immediate full repayment of the loan upon default✓ Correct
CTransfer the loan to another lender
DAllow the borrower to pay ahead of schedule

Explanation

An acceleration clause allows the lender to declare the entire loan balance immediately due and payable if the borrower defaults. This triggers the foreclosure process.

Related South Carolina Contracts Questions

Practice More South Carolina Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free South Carolina Quiz →