The two clauses in a mortgage which allow the lender to proceed with a foreclosure sale are which of the following?

The acceleration clause grants the lender the right to demand the entire outstanding loan balance be paid immediately if the borrower defaults on the loan terms. This "acceleration" of the debt is a necessary first step before foreclosure. The power of sale clause, which is standard in Massachusetts mortgages, then gives the lender the authority to sell the property through a non-judicial foreclosure process to recover the accelerated debt. Together, these two clauses provide the legal mechanism for a lender to proceed with a foreclosure sale upon a borrower's default.

A. An escalation clause allows for interest rate changes, and an alienation clause is triggered by the sale of the property, not payment default.

B. "Foreclosure clause" is a general term, not a specific operative clause. The alienation clause pertains to the transfer of property.

C. An escalation clause adjusts the loan's interest rate or payments and is not a mechanism for initiating a foreclosure sale.

1. Massachusetts General Laws, Chapter 183, Section 21. This statute defines the "Statutory Power of Sale," which can be incorporated into any mortgage. It explicitly states that upon default, "...the mortgagee...may sell the mortgaged premises...by public auction...and may convey the same by a deed...". This directly supports the function of the power of sale clause.

2. American Law Institute, Restatement (Third) of Property (Mortgages) § 8.1 (1997). This authoritative legal treatise states, "(a) If the mortgagor defaults...the mortgagee may foreclose... (b)...an acceleration provision in a mortgage is enforceable." This confirms the legal standing and function of the acceleration clause as a prerequisite to foreclosure.

3. Henry, J. F., & F. C. L. (2011). Massachusetts Mortgages and Foreclosures: The Law and the Facts. Suffolk University Law School, Housing Law Clinic. (p. 5-7). This academic resource from a reputable institution details the Massachusetts foreclosure process, explaining that a notice of default typically precedes the lender's decision to "accelerate the mortgage note, making the entire balance due and payable" before exercising the "power of sale."