In the context of mortgage lending, what does it mean for a loan to go into default?

A loan going into default signifies that the borrower has failed to fulfill their repayment obligations as outlined in the loan agreement. This typically means that the borrower has not made the scheduled payments for a specific period, which can vary based on the lender's policies. When a borrower misses payments and fails to bring the loan current, it can ultimately lead to serious consequences, such as foreclosure proceedings, negative impacts on the borrower’s credit score, and potential legal actions by the lender to recover the owed amount.

In the context of mortgage lending, the other options do not represent default. Consistently making payments on time indicates good standing and compliance with the loan terms. Successfully navigating credit underwriting shows that a borrower has met the lender’s criteria for loan approval, which is a positive aspect of obtaining a loan. Refinancing a loan reflects that the borrower has replaced the existing mortgage with a new one, often to obtain better terms, but does not equate to default.