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In this episode of "Finally Revealed," Michelle discusses the concept of default under a loan. She explains that before reaching default status, a borrower typically experiences delinquency, meaning they are not meeting the contract terms outlined in a promissory note. It's crucial to recognize that a loan may involve multiple documents, such as loan agreements, mortgages, or security agreements, in addition to the promissory note. Understanding the full set of documents associated with a loan, including any collateral or additional terms, is essential for borrowers. Michelle emphasizes the importance of thoroughly reading these documents or having someone review them to grasp all obligations before potential default occurs.