Default and Distress

An acceleration clause is the loan provision allowing the lender to declare the full balance due after serious default or other triggering events.

A deed in lieu of foreclosure is a default-resolution arrangement in which the borrower transfers the property interest instead of continuing toward foreclosure.

Default is the borrower's failure to meet mortgage obligations under the loan documents, often after missed payments or another material breach.

Mortgage default and distress terms that explain missed payments, servicing problems, and the path toward foreclosure.

A deficiency judgment is a judgment for the unpaid debt that may remain after foreclosure or another distressed property disposition.

Delinquency means the borrower has fallen behind on required mortgage payments.

Forbearance is a temporary agreement that pauses or reduces required mortgage payments for a limited period.

Foreclosure is the legal process through which a lender or its representative enforces rights against a property after serious mortgage default.

Judicial foreclosure is a foreclosure process that proceeds through the court system rather than relying only on a nonjudicial power-of-sale path.

A loan modification is a change to the mortgage terms intended to make the loan more sustainable for the borrower.

Loss mitigation is the set of workout efforts aimed at reducing mortgage-default harm for the borrower, servicer, lender, or all three.

Nonjudicial foreclosure is a foreclosure process that relies on document-based power-of-sale rights rather than a full court action.

A notice of default is a formal notice that the mortgage obligations have not been met and that the account is moving deeper into default status.

Reinstatement is the act of curing the default by bringing the mortgage account current according to the amount required.

A short sale is a sale of the property for less than the amount owed on the mortgage, with lender involvement in how the debt is resolved.