mortgage loan or housing loan

Your question is not understood. 

The home loan is also considered as mortgage loan. 

What is default even before loan is granted?

When you intend to take a loan (any type of loan such as home loan, eductation loan, vehicle loan etc.) and a property is deposited for collateral security, it is termed as "mortgage".

What are the facts vis-a-vis your query, it is vague and not understood. Redraft or consult a local prudent lawyer, if it is a real story.