I always like a clause that says what the default will be because things do happen and you don’t want to be in limbo, wondering what is the right thing to do.

The idea of ‘oh no, this is going to be foreclosed upon’ is taken back to they are funding the property, not you- meaning before a ‘judgment of default’ was to transpire (aka foreclosure) you would sign over the deed of the property to the hard money lender- but realizing before it ever got to that point they want you to be successful because the more success you have, the more times you will come back to them and they will make more money (repeat business for them) . 

I have received a mortgage offer with the wording of covenants and default looking very harsh.

I'm not seeing any increase in notice of defaults so you tell me. 

You’ll not likely be able to 1031 exchange your home, no matter what happens after you move out, since the purpose of purchasing it wasn’t Investment Property, but default to a 1031 pro here like @Dave Foster.Remember this:  when someone has a gun to your head, what do you do?  

Looking for a source of lists for notice of default in NE US areas.

If it moves to eviction, nobody will likely show up, so you will get a default judgement. 

Default rate 3.

I sent him certified mail terminating contract for default.

How fund&grow deal with defaults since its a non secured loan