What does Default mean?

Default is the failure to fulfill a legal or contractual obligation, such as the failure to make a required payment on a loan or mortgage. Default can have serious consequences, such as the loss of a property through foreclosure or the damage to a person's credit score. Default can also result in legal action being taken against the borrower, such as a lawsuit or a judgment.

Related Terms

Veterans Administration (VA) Fair Housing Act Contract For Deed Estimated Total Costs of Renting Amortization Co-Maker Corporate Relocation Escrow Insurance E/O English Tudor Style Effective Gross Income Mixed-Use Development Document Needs List Environmental Impact Statement Rack Eminent Domain Capital Improvement Low Density