Which scenario reflects "default" in a mortgage context?

In the context of a mortgage, "default" refers to a situation where the borrower fails to meet the legal obligations or conditions of the mortgage agreement. This typically involves failing to make the required payments on time. Therefore, when a borrower makes late payments, it indicates that they are not adhering to the terms set forth in the loan agreement, which constitutes a default.

Late payments can trigger a range of consequences, including late fees, potential foreclosure proceedings, or impact on the borrower's credit score. Thus, the scenario of a borrower making late payments accurately reflects a situation of default in the mortgage context, as it directly relates to the borrower's inability to meet the agreed-upon obligations of their mortgage loan.