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The phrase "was defaulted" is correct and can be used in written English
It is often used in legal or financial contexts to refer to a person or entity failing to fulfill their obligations or commitments. Example: The borrower was defaulted on their loan payments, causing them to lose their home.
Dictionary
was defaulted
noun
The condition of failing to meet an obligation.
Exact(14)
RIOS DEFAULTED: Marcelo Rios of Chile was defaulted for verbal abuse in the first round of the Mercedes-Benz Cup in Los Angeles on Wednesday night.
I could not play on the Centre Court because of that and was defaulted.
Abedini, who is 29 and unranked, was defaulted from the match and could now face a lengthy ban.
Kramnik's reaction was unequivocal: he refused to play in the rescheduled fifth game last Friday and was defaulted.
Second-seeded Mark Philippoussis was upset, while third-seeded Marcelo Rios was defaulted for verbally abusing the chair umpire.
The debt was defaulted on in the 1991 collapse of the Soviet Union and again in the August 1998 financial crisis when the ruble's value plunged.
Similar(44)
I was defaulting on the mortgage.
Or it can be defaulted on.
Mortgages were defaulted on across the nation.
She's defaulted on her home.
But they are defaulting on Europe's social model.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com