Meaning of first payment default?

what is loss mitigation?

First payment default is when a lender calls your loan due after you have missed a payment. Default meaning you have not lived up to the conditions of the loan and the lender may/is calling the loan due.

Check your actual loan documents to see the wording for your particular loan as frist payment default is usally reserved for poor credit car loans and such.

Loss mitigation is the department that will work out a solution for you to bring your payments current. They would rather work with you than file foreclosure. And yes, it looks worse when you don't make you first payment so if you want to keep this home, I would call the loss mitigation department and see what they can do for you.