A default occurs when a borrower fails to make interest payments or refund the principal as required by the terms of the debt instrument. A default empowers the lender to take legal action to recover its funds. Those actions can include foreclosure, seizure of assets, or forcing the borrower into bankruptcy court.
Related Fool Articles
- [link link title]
Recent Mentions on Fool.com
- 4 Obstacles That Keep Millennials From Buying Their First Homes
- Starting a Business With Student Loans
- 3 Reasons Financial Select Sector SPDR Fund Could Fall
- With Coffers Running Dry, Is Sears Holding Corp. Doomed?
- 3 Top Dividend Stocks with Huge Yields
- A Good Credit Score Might Get Easier to Attain, but Is This a Good Thing?