Loan acceleration (zesplatnění úvěru)
The moment when the bank declares the entire remaining debt due at once because the borrower has breached the loan agreement, typically by not paying instalments. The Civil Code allows this for a debt payable in instalments if the parties agreed it (loss of the benefit of instalments, § 1931 of the Civil Code). If the borrower does not pay the full amount, the bank moves to enforce its lien.
Example
A borrower took CZK 4,000,000 over 25 years at 5.00 % with a payment of CZK 23,384. After five years he stops paying, and after several demands the bank accelerates the loan. The whole balance of roughly CZK 3,543,000 falls due at once, plus default interest and collection costs. Anyone who cannot find CZK 3.5 million loses the property through a sale or an auction.
In practice
A single forgotten payment does not trigger acceleration: the bank first sends reminders and a written demand with a deadline. That is the moment to act. Ask for a payment deferral, a longer term or a voluntary sale of the property, which raises more than an auction. Staying silent and leaving the bank's letters unopened is the worst response, because after acceleration the bank is far less willing to talk about a repayment schedule. What to do from the first missed payment is set out in can't pay your mortgage.
How it differs
Acceleration is not early repayment: the borrower chooses to repay early, whereas the bank forces acceleration because the contract was breached. Nor is it enforcement (exekuce). Acceleration is a contractual step by the bank, and enforcement or realisation of the lien follows only if the accelerated debt stays unpaid.
Frequently asked questions
What is loan acceleration (zesplatnění)?
The bank declares the whole remaining loan due at once because the borrower broke the contract, usually by not paying. Before doing so over missed payments, it must ask you to pay the overdue instalment and give you at least 30 days.
How can you resolve an accelerated mortgage?
Pay the balance, try to agree a new schedule with the bank, or sell the property yourself before the bank enforces its lien; a voluntary sale usually raises more than an auction. The time to act is when the first demand letter arrives.
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