LBI Real Estate Acceleration Clause
- High Tides Digital Marketing
- Jun 4, 2019
- 2 min read
Long Beach Island NJ (LBI NJ) Real Estate Market Acceleration Clause
What is an Acceleration Clause and Long Beach Island Real Estate
An acceleration clause is a provision written into most mortgages that allows the lender to call, or make payable, the entire loan amount. In order to do so certain criteria which are defined in the Acceleration Clause have to be met. All buyers in the LBI real estate market should understand this term and how it relates to their mortgage.
LBI Real Estate Acceleration Clause
An acceleration clause can be trigger by any number of predefined reasons however the most common is a lack of payment. The number of missed payments will vary depending on the lender but repeated missed payments will often times force the lender to invoke the acceleration clause. In the event the borrower cannot pay the loan in full then a foreclosure proceeding may occur.
Acceleration Clauses in the Long Beach Island Real Estate Market
Acceleration Clauses are not a very common occurrence in the Long Beach Island real estate market. Luckily distressed sales, including short sales, foreclosures and bank owned homes, are rather rare on LBI. This has to do with the overall strength of the market and the reliability of summer rental income. Regardless of their infrequent nature, Acceleration Clauses do still come into play and therefore should be understood by all buyers and sellers in the Long Beach Island real estate market. If you have any questions about buying, selling or investing in the LBI real estate market please do not hesitate to contact me.
By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
