A mortgage default occurs when a homeowner fails to make their mortgage payments as agreed in the loan contract. This can happen due to various reasons such as financial hardship, job loss, illness, or other unexpected circumstances. When a borrower defaults on their mortgage, it puts them at risk of foreclosure, which is the legal process through which the lender repossesses and sells the property used as collateral for the loan.

Mortgage default can have serious consequences for homeowners. It may lead to damage to their credit score and result in losing their home if they are unable to resolve the situation. However, there are alternatives that homeowners facing mortgage default can consider.