Question on Default

Can I be defaulted more than once for the same loan?

My understanding when the original lender defaulted me then sell the loan to a debt buyer then a new default would be generated.

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  • MorningcoffeeIV
    MorningcoffeeIV Posts: 1,875
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    edited 2 February at 11:31PM
    No. It's the same default .         
  • sourcrates
    sourcrates Posts: 28,493
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    Well, what is a default, in financial terms it means that the agreement you had to repay the debt has ended.

    Because of non payment, the terms have been broken, so the lender has decided to cut its losses and end the arrangement.

    A debt can default only once, but when a debt is sold, there can be multiple entries for the same account, from both the old and the new owner.

    The original entry should show the date of default, and a zero balance, the new entry from the debt buyer, should show the same date of default, and the outstanding balance.

    Hopefully that clarifies things.
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