- Posted by HomeHow
- On December 5, 2018
- 0 Comments
A mortgage default means you have violated one or more terms on your mortgage contract. The most typical default is fail to make the mortgage payment. However, a number of other things can be classified as defaults, including:
- not having adequate insurance on your property
- failing to pay property taxes
- Selling the property without the bank’s consent
If your mortgage has gone default, the bank or lender may first send you reminder letters, then a demand letter which demands payment of the outstanding balance. If you fail to pay, the bank can eventually take possession of the property and sell it under the terms of the mortgage agreement. Defaulting on your mortgage can lead to a range of serious consequences. If you are experiencing financial difficulties, before allowing a default to occur, it is a good idea to contact your lender.