What is an important document that indicates a borrower's lack of repayment in the foreclosure process?

A default notice is an important legal document that serves as an official communication to the borrower indicating that they have fallen behind on their mortgage payments. It signifies the lender's intent to pursue foreclosure if the borrower does not remedy the situation—typically by making the overdue payments or entering into a repayment plan. This document is often the first step in the foreclosure process and outlines the amount owed and provides a timeframe within which the borrower must respond to avoid further action.

In contrast, a payment statement typically details the borrower’s account activity, showing payments made and the remaining balance but does not serve as a formal notification of default. Similarly, a loan statement provides a broader overview of the loan terms and repayment schedule. A foreclosure claim, on the other hand, is associated with the formal court proceedings to reclaim the property but is not the initial indication of a borrower's default status. The default notice is foundational in the foreclosure process as it communicates the critical nature of the borrower's repayment issues.