Legal
Default
Failure to meet the legal obligations of a mortgage, most commonly by missing payments. Defaulting on your mortgage can lead to late fees, damage to your credit score, and eventually foreclosure. Most lenders consider a loan in default after 90 days of missed payments. If you are struggling to make payments, contact your lender early to discuss options like forbearance or loan modification.
Why It Matters
Default has real legal implications for your rights and obligations as a homeowner or borrower. Overlooking the legal details of a real estate transaction can lead to costly problems down the road.
If you have questions about default, consider consulting a real estate attorney, especially if you are in a state that requires attorney involvement in real estate closings. A small investment in legal advice can prevent major headaches later.