What is acceleration?
Many contracts for debts contain "acceleration" clauses. This clause gives a creditor the right to "accelerate" the repayment when a payment is missed. Often, the creditor can require payment in full even when a single payment is missed. The courts may be able to force the debtor to pay a secured debt by seizing the debtor's property and selling it to pay off the debt.
Other Consumer Finance and Foreclosure FAQs
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When and why does foreclosure begin?
A: Lenders will initiate foreclosure proceedings when homeowners become delinquent in their mortgage obligations, usually after three payments are missed. The lender … More -
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Are you at risk of foreclosure?
A: If your financial situation has changed for the worse, you may be worried that you might be at risk of foreclosure. Have your finances changed due to a mortgage … More -
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I've fallen on bad times and am having trouble paying my mortgage. What should I do?
A: Homeowners facing financial difficulties and unable to make their mortgage payments are strongly encouraged to contact their lender. Many lenders offer assistance to … More -
Q:
What is deed-in-lieu of foreclosure?
A: A Deed in Lieu of foreclosure (DIL) is a disposition option in which a mortgagor voluntarily deeds collateral property in exchange for a release from all obligations … More -
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What happens when you miss your first mortgage payment?
A: Foreclosure processes vary by state. However, typically, after you miss your first month missed payment, your lender will contact you by letter or phone. A … More -
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What is a loan modification, and how will it help me with my mortgage?
A: A loan modification occurs when a homeowner enters into an agreement with his or her mortgage loan servicer to change the terms of the mortgage. The goal … More -
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What happens after you miss a second mortgage payment?
A: After missing your second month of mortgage payments, if you haven't already been contacted by your lender, your lender will likely begin calling you to discuss … More -
Q:
Will I be eligible for a loan modification under the Homeowner Affordability and Stability Plan if I am behind in my mortgage payments, but my house is not yet in foreclosure?
A: As long as you are otherwise eligible under the basic requirements discussed above, you have missed two or more mortgage payments, and your loan servicer is … More -
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What happens after a third month of missed mortgage payments?
A: If you've missed three months of mortgage payments, you will likely receive a letter from you lender stating the amount you are delinquent, and that you have 30 days … More -
Q:
If I'm current on my mortgage will the Home Affordable Refinance Program help me?
A: If you are current on your mortgage, you may be able to refinance your loan under the Home Affordable Refinance Program. Many homeowners who … More
