When a lender invokes an acceleration clause, the borrower must immediately pay the unpaid balance of the loan's principal, as well as any interest that accumulated before the lender invoked the acceleration clause.
Acceleration clauses, a common feature in mortgage contracts, require that you pay off your entire loan balance immediately in a single lump sum. If you're unable to pay off the mortgage, the lender could initiate foreclosure.
If the default isn't cleared, the lender can invoke accelerated payments by sending an acceleration letter. The borrower is required to pay the entire balance in full, agree to a short sale or home transfer, or enter the foreclosure process. The borrower may also have options to reinstate the loan after acceleration.
This document is used to inform the borrower that the lender has triggered their acceleration clause, which allows them to demand immediate repayment of all amounts due on the loan. The loan balance is due immediately instead of the remaining amount over the rest of the term.
If the mortgage has been accelerated and is still within the six-year statute of limitations, the mortgagee may revoke acceleration so long as “there is no change in the borrower's position” in reliance on acceleration.
Acceleration (a) is the change in velocity (Δv) over the change in time (Δt), represented by the equation a = Δv/Δt. This allows you to measure how fast velocity changes in meters per second squared (m/s^2). Acceleration is also a vector quantity, so it includes both magnitude and direction.
In physics, the fourth, fifth and sixth derivatives of position are defined as derivatives of the position vector with respect to time – with the first, second, and third derivatives being velocity, acceleration, and jerk, respectively.
Three phases of the acceleration process, a: delivery phase, b: contact phase, c: free flight phase. The figure shows one ball at equidistant time steps of the process. Therefore, it can be seen that the ball is faster in phase b and c than in phase a.
Loan Modifications
Probably the most common alternative to a foreclosure is a mortgage loan modification. This is a permanent solution for a homeowner who is unable to keep up with monthly payments.
If the borrower doesn't pay back the entire outstanding loan balance after the loan is accelerated, the lender can start a foreclosure to recoup the amount owed.
One way to attack a foreclosure is to argue that the foreclosing party does not have standing to foreclose. If the foreclosing party cannot produce the promissory note on which the loan is based, the court likely will dismiss the case.
The "Notice of Acceleration" sometimes called a "Demand Letter," normally states that the whole balance is due and payable immediately. If you fail to pay the entire amount due, the lender has the right to foreclose on the mortgage.
If you're wondering how all this works, generally a letter will arrive informing a borrower that the lender has triggered the acceleration clause. The letter will specify the amount due, consisting of the balance of the loan plus interest on any missed payments.
Accelerated payments can save you money on interest charges. By accelerating your payments, you make the equivalent of one extra monthly payment per year. Find out more about mortgage payment frequency.
Loan has been funded. The final step on the loan process is now complete: Your loan has been funded! At this time, all documentation is complete and the funds for the loan have been disbursed to the seller (for purchase) or to the payoff of the prior loan (for refinance).
Acceleration is the name we give to any process where the velocity changes. Since velocity is a speed and a direction, there are only two ways for you to accelerate: change your speed or change your direction—or change both.
In the first law, an object will not change its motion unless a force acts on it. In the second law, the force on an object is equal to its mass times its acceleration. In the third law, when two objects interact, they apply forces to each other of equal magnitude and opposite direction.
Acceleration may result from a change in speed, a change in direction or changes in both. Like velocity, acceleration can also be positive, negative or zero.
The acceleration of a body in one dimension is the rate of change of velocity with respect to time, a=dtdv. Using the chain rule, this expression for acceleration can be turned into an expression involving a derivative with respect to x rather than t.
Examples of acceleration in a Sentence
The car delivers quick acceleration. There has been some acceleration in economic growth. There has been an acceleration in economic growth.
If body is moving with constant velocity and force is applied so that it accelerats then first come velocity and then acceleration.
Acceleration is how fast an athlete can increase his or her speed. Being able to accelerate quickly greatly aids athletes because it allows them to get into more favorable positions in their sport.
Answer and Explanation:
Acceleration is defined as the rate of change of the velocity of an object. Since, velocity is a vector, a change in velocity could be a change in the magnitude of the velocity (either increasing or decreasing) or a change in the direction of the velocity.