What is the term for a borrower's failure to uphold the terms of a promissory note?

The term that describes a borrower's failure to uphold the terms of a promissory note is "default." Default occurs when a borrower does not make scheduled payments or otherwise fails to comply with the agreed-upon terms specified in the promissory note. This is a significant event in lending and can lead to severe consequences, such as a lender pursuing collections or initiating foreclosure proceedings on the property securing the loan.

Forbearance refers to a lender's agreement to temporarily suspend or reduce payments, which is often offered as a relief option to borrowers facing financial difficulties, rather than a failure to meet obligations. Foreclosure is a legal process that occurs when a lender attempts to reclaim property due to default, and equity describes the value of the property after all debts and obligations are settled, but it doesn't pertain to failing to meet the loan terms directly.