Stage 1 of 4 · The Paperwork Behind the Loan
Default
A breach of the loan terms, most often a missed payment, that gives the lender the right to act.
- In plain English
- Default is the trigger for everything that follows. It usually means missed payments, but it can also mean unpaid property taxes, lapsed insurance or an unauthorized transfer of the property.
- Example
- A borrower misses March, April and May, and the servicer treats the loan as in default even though June is paid on time.
- Why it matters
- Nothing in foreclosure starts without it, and the cure for it stays available far longer than most borrowers assume.
- Remember it as
- One broken promise opens every other door.
Where it lands in the timeline
Stage 1: The Paperwork Behind the Loan
Every foreclosure is already written into the papers signed at closing, so this phase reads the fine print before the fine print reads you.