Which of the following would NOT typically cause a technical default?

Prepaying the loan does not typically lead to a technical default because it does not violate the terms of the loan agreement in a way that would threaten the lender's security interest. A technical default generally occurs when a borrower fails to meet specific conditions of the loan agreement that do not directly involve payment.

For instance, failure to make a payment, making unauthorized alterations to the property, or failing to maintain adequate insurance can directly violate the covenants or agreements set out in the loan documents. These scenarios are typically viewed as breaches of contract that might give the lender the right to call the loan or take other actions to protect their security interest.

In contrast, prepaying the loan, though it might affect the lender's interest in terms of cash flow, usually does not constitute a breach of the loan terms. Many loans include prepayment provisions that explicitly allow borrowers to pay off their loans early, possibly with some fees or penalties. Therefore, it does not fit the criteria for a technical default. Understanding these distinctions is crucial in real estate finance and helps borrowers navigate their obligations under loan agreements effectively.