This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Nebraska Deed of Trust Securing Obligations Pursuant to Indemnification Agreement
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US-01776BG
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FAQ
ACCELERATION CLAUSE: This clause in a note and trust deed permits the payee or beneficiary to declare the entire unpaid balance immediately due and payable when a given condition occurs. Such a condition can be the sale of the land. This clause is sometimes called an ?alienation clause.?
An "acceleration clause" in a mortgage or deed of trust allows the lender, or current loan holder, to demand repayment in full if the borrower defaults on the loan.
This document may be called the Security Instrument, Deed of Trust, or Mortgage. When you sign this document, you are giving the lender the right to take your property by foreclosure if you fail to pay your mortgage ing to the terms you've agreed to.
What Is an Acceleration Clause? An acceleration clause is a contract provision that allows a lender to require a borrower to repay all of an outstanding loan if certain requirements are not met.
The Nebraska Trust Deeds Act is the statue that governs foreclosures in this state. Under this statue, foreclosure is a non-judicial remedy. The deed of trust, which secures the title to the property, is transferred to the foreclosing entity in a power of sale.
Deeds of Trusts with Power of Sale clauses attached give lenders the right to foreclose the property nonjudicially. Power of sales clauses work because in a borrower agreement, the deed of trust is held by the third-party trustee instead of the lender.
Due-on-Sale clause. A due-on-sale clause, or alienation clause, provides that when property is sold, the lender may either declare the entire debt due immediately or permit the buyer to assume the loan at an interest rate acceptable to the lender.
Along with standard covenants between you and the lender, the mortgage contains an "acceleration clause." This clause permits the lender to demand that you repay the loan's entire balance if you default, for example, by not making payments.
