Stage 1 of 4 · The Paperwork Behind the Loan
Acceleration
The lender's decision to declare the entire loan balance due at once because of a default.
- In plain English
- Acceleration turns a problem of a few missed payments into a demand for the whole balance. Before it, the borrower owes the arrears; after it, the borrower owes everything.
- Example
- A homeowner is three payments behind, and the lender accelerates, so the demand jumps from about nine thousand dollars to the full remaining balance.
- Why it matters
- It changes what a borrower must find to stop the sale, and in many states it is the formal step that must happen before a notice can be recorded.
- Remember it as
- Miss three, owe all of it.
Where it lands in the timeline
Stage 1: The Paperwork Behind the Loan
Every foreclosure is already written into the papers signed at closing, so this phase reads the fine print before the fine print reads you.