Failure to meet the terms of a mortgage, most commonly by missing payments — triggering lender remedies including foreclosure.
Full Definition
A mortgage default occurs when a borrower violates the loan agreement, typically by missing payments. Most loans have a 15-day grace period for monthly payments; after that, a late fee is charged. After 30 days of missed payment, the delinquency is reported to credit bureaus. After 90 days, the loan is typically in 'serious default' and the servicer begins loss mitigation outreach. At 120 days, the lender may initiate foreclosure proceedings. Default can also be triggered by failing to maintain homeowners insurance, failing to pay property taxes, or transferring ownership without lender consent (due-on-sale clause). The moment you anticipate trouble making payments, contact your servicer — options are much broader before formal default.
Related Terms
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