Escrow & Title
In Texas, an 'acceleration clause' in a deed of trust allows the lender to:
AIncrease the interest rate if the borrower pays early
BDemand the entire remaining loan balance immediately upon default or unauthorized transfer✓ Correct
CAdd time to the loan term if rates decrease
DTake possession of the property without a foreclosure
Explanation
An acceleration clause gives the lender the right to declare the entire remaining loan balance due and payable upon the occurrence of specified events, typically default in payments or an unauthorized sale or transfer of the property (due-on-sale clause). After acceleration, the lender can proceed with foreclosure if the borrower does not pay.
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