What is the difference between acceleration clause and alienation clause?

On the other hand, an acceleration clause allows the lender to demand immediate repayment of the entire loan balance under pressing conditions, which are usually a negative action, such as non-payment, foreclosure, failure to pay property taxes or provide insurance, or filing for bankruptcy. How does the alienation clause protect lenders?

What is an alienation clause in a mortgage?

Most lenders include an alienation clause (also called the “due-on-sale clause”) in their mortgage contracts to protect their interests in case you hand off the title of your home to someone else. Here are the main points you should know about the alienation clause, including what it is, how it works, when it applies and when it doesn’t.

What is alienation in real estate?

In real estate, alienation is the voluntary legal action taken by a property owner to transfer or dispose of their property. It encompasses a property’s right to be sold or given to someone else. Nearly all mortgages today include an alienation clause, which prevents the borrower from transferring the loan with the sale of the home.