Failure to meet or perform a contract obligation. With mortgage loans, the lender may declare the loan in default any time after a payment becomes past due beyond the grace period. However, most lenders will not declare default until the borrower is at least one to three months behind. A default notice will activate the foreclosure proscriptions of the mortgage deed. For more information, see the "Mortgage Deeds and Promissory Notes" article in the "Real Estate In-Depth" section.
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