Which of the following is NOT a way that a borrower may default on a loan?

The correct choice is about making timely payments of principal and interest, which is fundamentally the opposite of defaulting on a loan. A borrower is considered to be in default when they fail to meet the obligations of the loan; this includes scenarios where they do not make payments on time.

Timely payments of principal and interest contribute positively to a borrower's creditworthiness and demonstrate financial responsibility. In contrast, failing to pay property taxes, exceeding credit limits, and not paying monthly mortgage payments are all scenarios that can lead to a default. These actions can negatively affect a borrower’s financial standing and may trigger consequences, such as foreclosure or additional fees, depending on the condition of the mortgage or other financial agreements. Thus, making timely payments is a clear indicator of fulfilling loan obligations, distinguishing it from the other potential default scenarios.