Mortgage Default

Mortgage default occurs when a borrower fails to meet the legal obligations of their loan agreement, typically by missing mortgage payments over a certain period. This default indicates the borrower is unable or unwilling to continue making payments as agreed. Consequently, the lender may initiate foreclosure proceedings to recover the outstanding loan balance by selling the property. Default can happen due to financial difficulties, job loss, or other unforeseen circumstances. It’s important to communicate with the lender early if facing payment issues, as options like repayment plans or loan modifications may help avoid foreclosure.