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In this episode of "Finally Revealed," Michelle discusses the concept of being in default under a loan. Before reaching default, a borrower is typically in a delinquent status, which indicates non-performance according to the loan terms, often detailed in a promissory note. It's crucial to recognize that loans may include multiple documents beyond the promissory note, such as loan agreements, mortgages, or security agreements, especially if collateral is involved. Understanding all associated documents is essential before taking out a loan. Michelle emphasizes the importance of reading and comprehending these documents to avoid default or delinquency.
