Failure to Meet Mortgage Payments

A

The correct answer to this question is B. Default.

In the context of a mortgage, a default refers to the failure of a borrower to make the agreed-upon monthly payments on the loan. When a borrower defaults on a mortgage, it means that they have not fulfilled their contractual obligation to repay the borrowed funds according to the agreed-upon terms.

Defaulting on a mortgage can have serious consequences for the borrower, including the possibility of foreclosure. Foreclosure is a legal process by which a lender can take possession of a property and sell it in order to recover the unpaid balance of a mortgage loan.

Amortization, on the other hand, refers to the process of gradually paying off a loan over time, typically through a series of equal payments. Callable debt refers to a type of debt that can be redeemed or called back by the issuer before its scheduled maturity date.

In summary, the term used to describe the failure to meet legal obligations in a contract, specifically, failure to make the monthly payments on a mortgage is referred to as a default.