# Default

> Default governs what happens when the original payment map no longer holds

| Field | Value |
|---|---|
| Stable ID | `node:kiduna:real-estate-mortgage:default-foreclosure:default` |
| Family | Default, Loss Mitigation & Foreclosure |
| Domain | Governance |
| Era | Institutional Age → Agentic Age |
| Kind | pathology-or-event |
| Archetype | The Reversion |
| Claim layers | empirical, cultural_historical, synthesis, interpretive, symbolic_divinatory |

## What it is

Default is a pathology or event in the Default, Loss Mitigation & Foreclosure family, defined here by the function it performs in the property system rather than by label alone.

## What it actually does

Default governs what happens when the original payment map no longer holds.

## Why it exists

It exists because place is unique and immovable while law, capital, information, and human lives must still coordinate around it across time.

## System mechanics

- **Who uses it:** owner, occupant, buyer, seller, lender, investor, steward, regulator
- **Incentives:** access, certainty, control, value, continuity
- **Inputs:** place, people, records, rules, resources, time
- **Outputs:** rights, constraints, uses, relationships, consequences
- **Dependencies:** Land, Authority, Information, Capital, Time

## Archetypal reading

- **Essence:** Default governs what happens when the original payment map no longer holds
- **Gift:** Clarity about default makes a hidden allocation of place, time, authority, value, or risk available for deliberate choice.
- **Wound / Shadow:** When default is treated as neutral or inevitable, its costs can be shifted to people who hold less information, authority, liquidity, or mobility.
- **Failure mode:** The failure mode appears when default is stale, opaque, mispriced, misrecorded, overextended, or applied outside the conditions that made it useful.

## Lenses

- **Personal:** Notice where default appears as a structure in your own commitments: what is held, promised, priced, protected, excluded, or deferred?
- **Business:** Default reveals a handoff among information, authority, incentives, operating work, and capital. Make the owner of each handoff explicit.
- **Financial:** Default changes the timing, priority, comparability, liquidity, or distribution of cash flow and risk.
- **Property:** Default changes how a physical place can be used, valued, financed, transferred, occupied, maintained, or reclaimed.
- **Community:** Default can create benefits inside one parcel while exporting costs or opportunity to neighbors, institutions, or future residents.

## Divination

The Reversion enters the reading through Default. The issue is not only what is visible; it is which map of ownership, time, risk, authority, or belonging currently governs the situation.

**Question:** Which earlier warning became visible only after Default arrived?

**Guidance:** Trace the failure backward through incentives, information, leverage, timing, and feedback rather than locating blame at the final visible event.

## Game function

Enters as a systemic event that exposes hidden leverage, deferred cost, or misaligned incentives. Initiative 2.

## Relationships

- **Monthly Payment conflicts with Default.** Monthly Payment conflicts with Default through a change in rights, information, cash flow, priority, timing, or physical use.
- **Delinquency externalizes to Default.** Delinquency externalizes to Default through a change in rights, information, cash flow, priority, timing, or physical use.
- **Default amplifies Early Payment Default.** Default amplifies Early Payment Default through a change in rights, information, cash flow, priority, timing, or physical use.
- **Default is evidenced by Fannie Mae.** Default is evidenced by Fannie Mae through a change in rights, information, cash flow, priority, timing, or physical use.
- **Overleverage amplifies Default.** Overleverage amplifies Default through a change in rights, information, cash flow, priority, timing, or physical use.

## Oppositions

- Use Value versus Exchange Value
- Speed versus Diligence

## Historical lineage and regulatory context

Read Default through the lineage of Default, Loss Mitigation & Foreclosure: earlier customary or local arrangements became recorded, standardized, financed, regulated, digitized, or contested over time.

Rules vary by jurisdiction and transaction. Use the cited primary sources as starting points and verify current local law, program guides, contracts, and professional standards before operational use.

## Visual direction

Text-free rounded-square enamel artifact for Default: a beautiful structure whose hidden fracture propagates through claims, cash flows, and neighboring parcels; vitreous midnight enamel, blackened steel, warm brass, copper accents, mortgage-paper cream, deep green, slate, and sky blue.

## Engine output / Sentinel handoff

The generative interpretation above is preserved as Engine Output. Sentinel factors: jurisdiction-specific rules, factual uncertainty. These factors request contextual review; they do not delete or silently rewrite the candidate.

## Research / provenance

- [12 CFR Part 1024 — Regulation X](https://www.consumerfinance.gov/rules-policy/regulations/1024/) — Consumer Financial Protection Bureau; RESPA, settlement, escrow, servicing, loss mitigation.
- [FHA Single Family Housing Policy Handbook 4000.1](https://www.hud.gov/hud-partners/single-family-handbook-4000-1) — U.S. Department of Housing and Urban Development; FHA approval, origination, underwriting, appraisal, servicing, quality control.
- [VA Pamphlet 26-7 — Lender's Handbook](https://www.benefits.va.gov/WARMS/docs/admin26/m26-07/Lender_Handbook_VA_Pamphlet_Complete.pdf) — U.S. Department of Veterans Affairs; VA-guaranteed mortgage lending.
