How does an acceleration on a defaulted loan obligation work?
If a borrower fails to perform, the lender may declare a default under its note, and mortgage or deed of trust. As a rule, the loan documents will give the borrower a certain amount of time to fix the problem, or to cure the default. Most mortgages or deeds of trust give the lender the right to accelerate the note upon default. This means that, if the borrower misses one payment, the lender can declare the entire amount of the mortgage – not just the missed payments – to be due. These acceleration clauses in promissory notes ordinarily are enforceable under Florida law. In some non-real estate contexts, if one payment is missed on a debt, the lender can accelerate the loan, demand payment in full and the borrower can do nothing, except pay in full or suffer the consequences. Upon monetary or non-monetary default, the lender usually has the contractual right to immediately accelerate mortgage obligations unless: the lender waives the right to accelerate or is estopped to do so because o
