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Default
Real Estate Investing Definition

The definition of Default is:

Failure to make mortgage payments as agreed to in a commitment based on the terms and at the designated time set forth in the mortgage or deed of trust. It is the mortgagor's responsibility to remember the due date and send the payment prior to the due date not after. Generally thirty days after the due date if payment is not received the mortgage is in default. In the event of default the mortgage may give the lender the right to accelerate payments take possession and receive rents and start foreclosure. Defaults may also come about by the failure to observe other conditions in the mortgage or deed of trust.

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