Before initiating a foreclosure action, Lenders (both consumer and commercial) should be certain that they have taken the proper steps to accelerate the full balance due on the loan before filing the foreclosure.
If the loan has already matured, there is no need to accelerate the loan. However, if the loan has not yet matured, the foreclosure attorney should make sure that the foreclosure attorney and/or the Lender has complied with all necessary provisions of the Promissory Note and Deed of Trust to accelerate the unmatured principal balance due on the loan. Many commercial transactions do not require any special notice prior to acceleration.
However, many standard form residential Deed of Trust forms require that the Lender provide the Borrower a notice giving the Borrower 30 days to reinstate the loan before the Lender can accelerate the unmatured principal balance to foreclosure. The Deed of Trust form also contains special language which must be included in the notice.