Jennifer's Pensacola mortgage contains an acceleration clause. She defaults on payments. Under Florida's lien theory, what can the lender do?

Correct Answer

A) Declare the entire loan balance due and begin foreclosure

Correct: A - Declare the entire loan balance due and begin foreclosure. An acceleration clause allows the lender to declare the entire loan balance immediately due upon default and then begin judicial foreclosure proceedings. Why not B: This option is incorrect because "Convert the mortgage to a deed of trust" does not match the rule tested by the question. The correct answer is "Declare the entire loan balance due and begin foreclosure". An acceleration clause allows the lender to declare the entire loan balance immediately due upon default and then begin judicial foreclosure proceedings. Why not C: This option is incorrect because "Immediately take possession of the property" does not match the rule tested by the question. The correct answer is "Declare the entire loan balance due and begin foreclosure". An acceleration clause allows the lender to declare the entire loan balance immediately due upon default and then begin judicial foreclosure proceedings. Why not D: This option is incorrect because "Automatically void the borrower's title" does not match the rule tested by the question. The correct answer is "Declare the entire loan balance due and begin foreclosure". An acceleration clause allows the lender to declare the entire loan balance immediately due upon default and then begin judicial foreclosure proceedings.