Question: When is a loan in default?
Answer: Under one or more of several circumstances. The most common way that a borrower is in default is monetary – e.g., the borrower fails to make a required payment.
However, default can be for a non-monetary reason as well, such as:
- Failure to pay taxes.
- Failure to pay insurance.
- Failure to remove or bond over mechanic’s liens.
- Failure to perform requirements unique to the loan.
If you have questions about default, please call Eddie and Jennifer.
