Default

Default is the failure to meet the obligations agreed upon in the Promissory Note or Mortgage. While usually financial (missing payments), it can also be non-financial (failure to pay taxes or maintain insurance).When a borrower defaults, the lender doesn't just ask for the missed payment. They trigger the Acceleration Clause. The entire loan balance becomes due immediately. If the borrower cannot pay the full balance, the lender begins Foreclosure proceedings to seize the property and sell it to recover their money.