Escrow & Title
What is a 'notice of default' in Delaware mortgage foreclosure?
AA notice the borrower receives when the lender defaults on their obligations
BA formal notice from the lender to the borrower stating that the mortgage is in default due to missed payments — initiating the foreclosure process✓ Correct
CA notice required by Delaware law at the beginning of every mortgage
DA notice the borrower gives to the lender about intending to default
Explanation
A notice of default is the lender's formal notice to the borrower that the mortgage is in default (typically due to missed payments). In Delaware's judicial foreclosure process, this initiates the foreclosure action — the lender files a complaint in Superior Court.
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Key Terms to Know
Debt-to-Income Ratio (DTI)
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
State-Specific Concepts
Continuing Education
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