Notice of Default

Definition

A formal written notification from a lender that a borrower has failed to meet loan obligations. The first scary letter that makes your stomach hurt.

Example Usage

After missing three mortgage payments, we received a notice of default warning us that foreclosure was coming.

Origin

Legal terminology combining 'notice' and 'default' (failure to perform)

Fun Fact

A notice of default typically triggers a 30-day cure period in which you can get current

Source: Real estate law and lending terminology

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