Methodology authored by Zach Wade, Wade Intel — operator-led lender tech methodology firm. Definitions validated against production borrower-validation runs with working bridge lenders. · Last reviewed 2026-07-10

What is Notice of Default (NOD)?

A formal notification recorded in the county where a property is located, stating that a borrower has failed to make required payments on a mortgage or deed of trust. An NOD is typically the first step in the foreclosure process.

Why it matters to bridge lenders

NODs on a borrower’s properties — past or present — are early warning signs. A borrower with active NODs on existing properties while applying for new bridge loans may be in financial distress and using new loans to cover old ones. That’s the definition of borrower fraud in bridge lending.

Related: Foreclosure, Deed of Trust, Lis Pendens