What constitutes a breach or a default?
A breach exists when the borrower fails to make the payments of principal and interest when due pursuant to the note secured by deed of trust. If the balance of the note is due, the breach would be the failure to make the principal payment due plus interest, by the maturity date. Most deeds of trust have provisions for default being declared when a senior lien, insurance, taxes and assessments have not been paid, or if the property is transferred without the lenders approval.
A breach happens when the borrower fails to make the payments of principal and interest. If the balance of the note is due, the breach would be the failure to make the principal payment due plus interest, by the maturity date. Most deeds of trust have provisions for when a default can be declared. For most deeds of trust, a breach can be declared when a senior lien, insurance, taxes and assessments have not been paid, or if the property is transferred without the lenders approval.
