Mortgage Default
Mortgage default occurs when borrowers fail to meet loan obligations, typically defined as missing two consecutive payments, triggering lender remedial actions and potential foreclosure proceedings.
| Default Timeline | Progression |
| 30 days overdue | Late fee charged, reminder sent |
| 60 days overdue | Formal warning letter |
| 90 days overdue | Default notice, legal proceedings possible |
| 120 days overdue | Acceleration clause triggered |
| 180+ days overdue | Foreclosure initiated |
| Common Default Causes | Reason |
| Job loss | Income interruption |
| Business failure | Self-employed income loss |
| Medical emergency | Unexpected expenses |
| Divorce | Asset and income split |
| Over-leverage | Excessive debt burden |
| Consequences | Impact |
| Credit score | Severe damage, 200+ point drop |
| Legal costs | Added to debt |
| Property seizure | Foreclosure proceedings |
| Deficiency judgment | Liable for shortfall after sale |
| Future borrowing | Blocked 5-7 years |
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