A Notice of Default is pretty much the beginning of end of your home ownership. Typically once you have defaulted 3 monthly mortgage payments in a row, your lender will send you the Notice of Default, or NOD, which is recorded by a County Recorder and the fact that mortgage is in default becomes public information.

Typically once a Notice of Default has been filed you have about 3 months before they send a Notice of Sale. Once the Notice of Sale is initiated you have about 3 weeks until the actual sale date.If you receive a notice of default (NOD) for your mortgage, you need to act quickly. A NOD is a notification given if you have not made payments by the predetermined deadline (usually specified in your Deed of Trust).

The mortgage lender has the legal right to file one after the first missed mortgage payment, however, it is usually done after 3-4 missed payments. Any parties that may be affected by the foreclosure will typically receive a copy of the notice.

It is a document, prepared by the trustee (who is appointed by beneficiary/ lender). This document is prepared by the order of lender, when the trustor (borrower) is in default, that is, when the borrower is unable to make the monthly payment, or was unable to pay off the loan when it became due

Auctions can be tough because they sometimes occur on short notice and don’t allow you much time to do research and analysis of the property. Auctions are held in a public place, which can range from in front of the property being sold to the more common locations of the local courthouse steps or civic areas. The successful bidder at the auction will receive a Trustee’s Deed to the property usually within 30 days of the sale. For the most part foreclosure sales must take place on any business day between the hours of 9AM and 5PM and must occur at the location referenced on the notice of sale . The trustee will auction the property to the highest bidder, including the lender.

Properties sold at the public auctions are sold as is and without warranties. At this point the prior home owners will not only have the foreclosure on their credit, but they may also get a deficiency judgment showing that they still owe on any additional amount the lender did not recover.

Lenders don’t want you to default on your loan; they want to be paid and are willing to work with you. There are several refinance options that might help lower your payments.  Lenders may not contact you until you’ve skipped a second payment, but most will report the first late payment and every subsequent delinquency to the credit bureaus. Even a single late payment can devastate your credit score, the three-digit number that lenders use to help gauge your creditworthiness.  Lenders don’t want a foreclosure to happen anymore than you do.

The borrower can stop the foreclosure process by paying off the amount owed any time before the foreclosure sale listed on the letter.Ideally, if you can afford the amount requested, this should be paid within the specified time limit to avoid court action. However, if you cannot afford to pay and you have additional debts, it’s sensible to make an offer to all your creditors.

This entry was posted on Wednesday, April 22nd, 2009 at 8:01 am and is filed under Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.