If there is no acceleration clause in a mortgage, how much can the mortgagee collect in a sale of the property?

In the context of a mortgage without an acceleration clause, the correct interpretation is that the mortgagee can only collect the amount that is currently due and owing at the time of the sale of the property. An acceleration clause typically allows the lender to demand the entire balance of the loan if the borrower defaults, but without such a clause, the mortgage remains in force according to its original terms.

This means that in the absence of an acceleration clause, if the borrower defaults, the lender cannot demand full repayment immediately. Instead, they can only collect any outstanding payments that have accrued up to the sale date. The amount owed would be the sum of any missed payments plus any applicable interest, fees, or other charges that may have been authorized in the mortgage agreement, but nothing beyond what is currently due.

The other choices do not accurately reflect the implications of a mortgage lacking an acceleration clause. For example, if the mortgage were valid and enforceable, asserting that nothing could be collected or that the full balance could be demanded would misinterpret the principles of mortgage law.