RE-160 Lecture Notes - Lecture 28: Quitclaim Deed

• School: Diablo Valley College
• Department: Business Accounting/Management/Marketing/Real Estate
• Course: RE-160
• Professor: burnaford

Document Summary

Default can be defined as a failure to fulfill a contract, agreement, or duty, especially a financial obligation. Default in a mortgage occurs as result of breach of the contract which includes: Failure to meet an installment of the interest and principal payments. Failure to pay taxes or insurance premiums when due. Failure to keep the security in repair may also constitute default usually referred to as technical default. Default may also be seen in terms of the breach of the letter of the contract and then in the attitude of the mortgage. In the former case, despite default, the lender may decide to ignore or postpone taking action, especially where the mortgage is of good character (past prompt payment, wish to retain property etc). While in the latter case default may be accompanied by abandonment necessitating the lender to act so as to protect her interest against vandalism, neglect and waste.