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Tags: loans
Categories: Economics & Finance
A default on a loan or contract occurs when the borrower fails to meet the specifications of the contract, the legal duty required by the loan. The loan contract states many terms the debtor must meet, especially regarding payments, such as when payments must be made, and how the loan must be managed. When the debtor breaks any aspect of these contracts, it is considered a loan default, and the lender takes steps to try to recover losses.
(Read more: http://www.ehow.com/info_8286601_meaning-defaulted-loan.html#ixzz2Zh6C5E3E)
