Uncollaterized default
Borrower defaults, but negotiates an extension agreement with the DAO: If a borrower defaults a loan (he doesn't repay before the limit day) and the user can get in agreement with the DAO to extend his repayment date to be able to keep paying the full amount, the DAO can choose to wait before marking the loan as defaulted. (A loan won't be marked as defaulted until the DAO decides to do it so)
Loan marked as defaulted but borrower still repaying the loan: Even if a DAO already has marked a loan as defaulted, it can still be repaid. Once the loan is marked as defaulted an event is triggered that records the default event in the blockchain. A borrower (or someone else, a benefactor) can still be repay the loan, which will change the status of the loan to ‘Fully repaid’. This method will record late payments (which in the future might be used for credit scores.
Changing default status to resolved: If the loan is marked as defaulted AND the borrower never repays the loan by normal means, but the DAO and the borrower negotiate an (external ) agreement with the DAO, it can still be marked as ‘Resolved’. (Meaning that the loan has been resolved by external means - Currently ‘Marked as Resolved’ use case is still under development in our interface.)
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