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In this episode of "Finally Revealed," Michelle discusses the concept of default under a loan. Prior to default, an account is considered delinquent, indicating that the borrower is not fulfilling the terms of the contract—typically a promissory note. It's crucial to recognize that loans can involve multiple documents, including collateral agreements, loan agreements, mortgages, or security agreements. Understanding which documents pertain to your loan is vital, especially when dealing with installment loans or credit card agreements that may consist of a single document. Michelle emphasizes the importance of reading these documents thoroughly, or having someone else do so, to grasp all terms before potential default occurs.
