What does defaulting on a mortgage mean?

Defaulting on a mortgage means that a homeowner has missed several mortgage payments and has not met the terms of their loan agreement. Typically, a mortgage is considered in default after the borrower fails to make payments for a certain period, often around 90 days, but this can vary depending on the lender’s terms.

When a homeowner defaults, the lender may start taking steps to recover the money owed. This could lead to foreclosure, where the lender takes possession of the home and sells it to cover the outstanding loan amount. Before foreclosure, many lenders try to work with homeowners to find a solution, such as modifying the loan, setting up a payment plan, or offering a temporary forbearance.