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module five mortgage default and foreclosure under a typical mortgage arrangement the borrower has the right to live on the property used as security for the loan however at the lender retains certain powers over the land these rights typically include the ability to impose a lien or take possession of the property used to secure the mortgage in the event of a default this final module reviews the events that give rise to default the rights and remedies available to lenders when borrowers default and the defense is available to borrowers in foreclosure mortgage default default occurs when a mortgage borrower fails to meet the terms of the mortgage contract default is usually triggered by a failure to make monthly payments different lenders define to fall differently however so whether a borrower is in default depends on the terms of the mortgage for example some contracts only place a mortgage borrower into default for a repeated failure to make payments some agreements allow borrowers