The Real Estate Encyclopedia
What Is A Default Clause?
Category - Home Selling Questions - Selling Legal & Closing FAQ's

The default clause in a note and mortgage protects the lender if there is a non-performance of a duty or obligation on the part of the borrower.  This clause requires the timely payment of the terms of the note, upkeep of the property, payment of property taxes and insurance, as well as permission from the lender for improvement to be made on the property.  If the borrower defaults, the lender has the right to foreclose. 

Home Selling Questions - Selling Legal & Closing FAQ's
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