Cross-Default Clauses
Posted on March 19, 2009 - Filed Under Reference | Leave a Comment
Be careful with mortgage documents containing “cross-default” provisions that authorize a mortgagee to accelerate the mortgage obligation if any other mortgage on the real estate goes into default. The absence of an acceleration provision can have profoundly negative consequences for mortgages. In this setting, the mortgagee must either foreclose for each installment as it comes [...]