When a borrower has failed to make regular and timely mortgage payments as formally agreed upon.
A borrower defaults on a loan when they have failed to make regular and timely mortgage payments as formally agreed upon in the Deed of Trust or Promissory Note. Once a borrower is 90 days late on a mortgage payment, a notice of default (NOD) is issued. See “foreclosure.” Such a derogatory mark on credit can inhibit one’s ability to obtain standard mortgage financing.