What is default?
Generally speaking, to default is to fail to fulfill an obligation or perform a duty.
In real estate, this term most often refers to financial obligations – to default on regular payments (mortgage, taxes, etc).
What types of default are there?
Depending on what the failed obligation was, default can be monetary or technical.
What is monetary default?
Moneary default refers to failing to make timely regular payments on a loan or credit. For example, failing to make several consecutive mortgage payments either on time or at all, which may result in the mortgage lender enforcing the mortgage lien and taking possession of the property that is put up as collateral
What is technical default?
Although regular payments are made on time, other obligations stated in the contract are not fulfilled. For example, failure to pay property taxes on time or failure to maintain required upkeep of the property.
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