Tennessee Real Estate License Exam Practice Question
The two clauses in a mortgage which allow the lender to proceed with a foreclosure sale are which of the following?
Correct Answer: D
Rationale: The acceleration clause allows the lender to demand the full loan balance if the borrower defaults, facilitating the initiation of foreclosure. The power of sale clause grants the lender the authority to sell the property without court intervention, streamlining the foreclosure process.
Option A is incorrect as escalation clauses pertain to increasing payments rather than foreclosure. Option B incorrectly pairs the foreclosure clause, which is not standard terminology, with the alienation clause, which deals with property transfer. Option C includes an escalation clause, which does not relate to foreclosure. Thus, D accurately identifies the necessary clauses for foreclosure proceedings.
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