A Notice of Default is a formal notification sent to a borrower or a tenant indicating that they have failed to make the required payments or comply with the terms of a loan or lease agreement. It often includes details on the grace period provided to cure the default and the penalties that will be applied if the default is not resolved.
A prepayment clause permits a borrower to pay off a loan before its maturity date, sometimes incurring a penalty for the privilege of early payment.
The act of curing a default by paying off all overdue loan payments and applicable penalties before a lender can initiate foreclosure proceedings.
