Monday, June 17, 2024

Foreclosure: Default

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:

  1. Failure to pay taxes.
  2. Failure to pay insurance.
  3. Failure to remove or bond over mechanic’s liens.
  4. Failure to perform requirements unique to the loan.

If you have questions about default, please call us at 545-6251.

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