Final answer:
A declaration of default is sent by the lender in the case of default on a loan secured by a trust deed. It notifies the borrower of their failure to meet payment obligations and gives them a chance to rectify the default before foreclosure proceedings.
Step-by-step explanation:
In the case of default on a loan secured by a trust deed, a declaration of default is typically sent by the lender to the borrower.
This declaration notifies the borrower that they have failed to meet their payment obligations and gives them a certain period of time to rectify the default before further action is taken.
If the borrower does not resolve the default within the specified period, the lender may proceed with foreclosure and take possession of the property.