What is the difference between an 'acceleration clause' and a 'due-on-sale clause' in a mortgage?

ACCELERATION CLAUSE vs DUE-ON-SALE CLAUSE: ACCELERATION CLAUSE: Allows the lender to demand the ENTIRE remaining loan balance be paid IMMEDIATELY upon a triggering event — most commonly DEFAULT (missed payments, breach of terms); it 'accelerates' the maturity of the debt; necessary for foreclosure (the lender accelerates, then forecloses if not paid); DUE-ON-SALE CLAUSE (alienation clause): Allows the lender to demand full payment if the property is SOLD or TRANSFERRED to a new owner; prevents the buyer from ASSUMING the existing loan without the lender's consent; protects the lender's right to re-evaluate (and re-price) the loan with a new borrower or require payoff; EFFECT: Most modern loans are NOT freely assumable due to due-on-sale clauses (the loan must usually be paid off on sale, and the buyer gets a new loan); ASSUMPTION: Some loans (certain FHA/VA) may be assumable under conditions; KEY DISTINCTION: Acceleration is triggered by DEFAULT; due-on-sale is triggered by TRANSFER/SALE of the property; both let the lender demand full payment but for different reasons; understanding these clauses (and their effect on assumption and foreclosure) is important finance knowledge for brokers tested on the national exam.