WHAT IS A DEFAULT?
When you sign a mortgage contract, you agree to regularly pay your home loan, along with property taxes, homeowners insurance, and mortgage insurance premiums. Defaulting on your mortgage means you are not meeting some or all of these obligations.
A notice of default is usually sent when someone fails to make their monthly loan payments for a while. If they don't pay by a specific date, their home could be at risk of being taken away. Other ways to break a mortgage contract and put a home into default include not paying property taxes or insurance, selling the home to someone else without permission from the lender, or damaging the property so much that its value is affected.