When a borrower stops making loan payments for an extended stretch and fails to bring the account back into compliance, that's when default kicks in. At this point, the lender has every right to take action—whether that's liquidation, seizing collateral, or enforcing other remedies outlined in the loan agreement. Default isn't just missing a payment here and there; it's the serious breakdown of the borrowing relationship when the borrower clearly isn't honoring their obligations.