Notice of Default
/ˈnoʊ.tɪs ʌv dɪˈfɔlt/
Definitions
- (n.) A formal written notification issued to a borrower indicating they have breached the terms of a loan agreement, typically due to missed payments, and that the lender may initiate foreclosure or other legal remedies.
The bank sent a notice of default after the borrower missed three consecutive mortgage payments.
Forms
- notice of default
- notice of defaults
Related terms
See also
Commentary
A notice of default serves as a critical preliminary step in enforcing remedies for breach of loan terms; precise issuance procedures and timing are often governed by statute or contract.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.