- A debt or other financial obligation on which payment is overdue, such as a failure to make mortgage payments when they are due.
lapse, neglect payment, failure, misconduct
Related Terms and Acronyms
- Bad Credit — Definition,
- Someone who carries a higher credit risk.
- Bad Credit Loan — Definition,
- A loan taken out by someone with bad credit.
- Credit Risk — Definition,
- The risk of loss assumed under a financial contract that a borrower or a counter-party to a loan or other credit-related contract may default or fail to fulfill its obligations.
- Default — Definition,
- When a borrower fails to fulfill the obligations of a loan or lease.
- Forfeiture — Definition,
- Loss of property because of violation of law or contract.
- Fresh Start — Definition,
- The characterization of a debtor's status after bankruptcy. i.e., free of most debts.
- Good Credit — Definition,
- Someone who carries little credit risk.
- Guaranty — Definition,
- A promise to assume responsibility for a debt if the borrower defaults.
- Notice of Default (NOD) — Acronym, Important,
- The step in the foreclosure process where the lender informs the court that the borrower is in arrears.
- Restructured Loan — Definition,
- A mortgage in which basic terms -- such as interest rate, term and monthly payment -- have been changed to prevent foreclosure. Not a normal practice in Canada.