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In this episode of "Finally Revealed," Michelle discusses the concept of default under a loan. She explains that before default occurs, a borrower typically becomes delinquent, meaning they are not adhering to the loan's terms, often outlined in a promissory note. It's crucial to recognize that loans may involve multiple documents, such as a loan agreement, mortgage, or security agreement, in addition to the promissory note. Understanding all the relevant documents is essential when taking out a loan. Michelle emphasizes the importance of reading these documents or having them read by someone else to fully grasp the terms and conditions to avoid defaulting.
