What must occur for an "Acceleration Clause" to be triggered?

An acceleration clause is a provision in a mortgage contract that allows the lender to demand the full loan amount to be paid immediately under certain conditions. The most common trigger for this clause is the failure to meet loan conditions, which typically means the borrower has defaulted on the loan in some manner, such as missing payments or violating other terms of the loan agreement.

When a borrower fails to make timely payments, it breaches the terms laid out in the mortgage agreement, prompting the lender to invoke the acceleration clause. This allows the lender to accelerate the due date of the entire remaining balance, rather than just the overdue payments. Understanding this is crucial for borrowers to maintain their obligations and avoid such consequences, which could lead to foreclosure proceedings.

The other answer choices - voluntary payment of principal, timely payment history, and clear title ownership - do not relate to the triggering of the acceleration clause because they either describe situations where the loan is being managed properly or pertain to other aspects of property ownership and financing.