Law Commons^™

Enforcement Of Acceleration Provisions And The Rhetoric Of Good Faith, R. Wilson Freyermuth

Faculty Publications

Today, virtually all mortgages contain acceleration clauses permitting the mortgagee to accelerate the mortgage indebtedness upon default by the mortgagor as defined in the mortgage loan documentation. Section 8.1 of the new Restatement (Third) of Property: Mortgages [hereinafter Mortgages Restatement]1 endorses the view that these mortgage acceleration provisions are generally enforceable after default in accordance with their terms. Following default and acceleration, the mortgagor may prevent foreclosure only by redeeming the property from the mortgage debt, i.e., “only by paying or tendering to the mortgagee the full accelerated mortgage obligation.” Section 8.1(d)(3), however, places certain constraints upon the mortgagee's right …