Jillian has a mortgage loan for $50,000 with Midtown Bank.Jillian misses one payment.Midtown Bank forecloses on the entire amount of the loan.Midtown Bank can do this if the loan documents include

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An acceleration clause allows the lender to demand repayment of the entire loan immediately if the borrower misses a payment. With an acceleration clause, the lender can foreclose on the entire amount of the loan without giving any notice of default or sale. Therefore, C is the correct choice. A notice of default (A) is a notification to the borrower that they are in default of their loan and that the lender may pursue legal action. A notice of sale (B) is a public announcement of a foreclosure sale. A deficiency judgment (D) is a court order that allows the lender to recover any remaining balance on a loan after a foreclosure sale.

Jillian Has a Mortgage Loan for $50,000 with Midtown Bank