What constitutes a Breach or a Default which will permit Foreclosure?
A “breach” exists when the borrower fails to make the payments under the terms of the loan, or fails to meet other obligations including payment of property taxes, keeping the premises insured and maintaining the premises in good repair. If the Deed of Trust includes a “Due on Sale” clause, any unauthorized transfer of ownership of the property without satisfaction of the obligation can also be declared as a default. In the event that a senior lien exist, a default under that superior obligation can also be a default.
