Tennessee Real Estate Exam Practice Question
The two clauses that together give a lender the right to accelerate the loan and proceed with a foreclosure sale are
Correct Answer: D
Rationale: The combination of an acceleration clause and a power of sale clause grants lenders the authority to initiate foreclosure when borrowers default. The acceleration clause allows lenders to demand the full loan balance upon default, while the power of sale clause enables them to sell the property without court intervention.
Option A is incorrect as an escalation clause pertains to increasing payments, not foreclosure. Option B mistakenly includes a foreclosure clause, which is not a standard term in this context. Option C incorrectly pairs an escalation clause with a power of sale clause, which does not pertain to loan acceleration.
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