---
title: What is a loan default?
description: A derogatory credit event that results when a borrower fails to make regular & timely payments to the mortgagor as formally agreed upon in the DOT or Note.
---

[Skip to content](https://info.jvmlending.com/knowledge/what-is-a-loan-default#main-content)

English

Show submenu for translations

![jvm\_logo\_small.png\]](https://info.jvmlending.com/hs-fs/hubfs/Logos/jvm_logo_small.png?height=40&name=jvm_logo_small.png)

Open main navigation

Close main navigation

- English
  
  Show submenu for translations
- [Go to jvmlending.com](https://www.jvmlending.com/)

[Go to jvmlending.com](https://www.jvmlending.com/)

 Welcome! How can we help you?

- There are no suggestions because the search field is empty.

1. [Knowledge Base](https://info.jvmlending.com/knowledge?hsLang=en)
2. [FAQs](https://info.jvmlending.com/knowledge/faqs?hsLang=en)
3. [Getting Pre-Approved](https://info.jvmlending.com/knowledge/faqs?hsLang=en#getting-pre-approved)

# What is a loan default?

## 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](https://www.jvmlending.com/glossary/#deedoftrustdot) or [Promissory Note](https://www.jvmlending.com/glossary/#promissorynote). Once a borrower is 90 days late on a mortgage payment, **a notice of default** (NOD) is issued. See “[foreclosure](https://www.jvmlending.com/glossary/#foreclosure).” **Such a derogatory mark on credit can inhibit one’s ability to obtain standard mortgage financing**.

- [FAQs](https://info.jvmlending.com/knowledge/faqs?hsLang=en#main-content)

    - [Closing](https://info.jvmlending.com/knowledge/faqs?hsLang=en#closing)
    - [Getting Pre-Approved](https://info.jvmlending.com/knowledge/faqs?hsLang=en#getting-pre-approved)
    - [Post-Close](https://info.jvmlending.com/knowledge/faqs?hsLang=en#post-close)
    - [Making Offers](https://info.jvmlending.com/knowledge/faqs?hsLang=en#making-offers)
    - [Loan Products](https://info.jvmlending.com/knowledge/faqs?hsLang=en#loan-products)
    - [Mortgage Interest Rates](https://info.jvmlending.com/knowledge/faqs?hsLang=en#mortgage-interest-rates)

[![Chill listening crop-3](https://info.jvmlending.com/hs-fs/hubfs/Logos/jvm_logo_small.png?width=72&height=36&name=jvm_logo_small.png "Chill listening crop-3")](https://www.jvmlending.com/)

JVM Lending | Knowledge Base

Copyright © 2026, JVM Lending