What is a Notice of Default? As a result of being late on your mortgage payments, you have defaulted on your loan. A Notice of Default is an official notice that your lender intends to foreclose on your property! Typically it’s when you fall 90 days late on your mortgage payments, and the bank or holder records a Notice of Default on your property in the county where it’s located and files a PUBLIC NOTICE to advertise in the newspapers, trade papers, and online resources that you are 90 days behind on your mortgage obligation. The most important aspect of this notice from a time standpoint is that “Time is of The Essence” you need to ACT or you may lose your home in Foreclosure!
TIME IS OF THE ESSENCE: This is when something must be done immediately, the bank has given you notice and you must act, and take necessary action within the timelines you have been given and you are now on notice and warned of the impending action the bank is going to take if you don’t remedy the default, they intend to and will foreclose on your property.
PRE-FORECLOSURE: You are now in a pre-foreclosure period, and there are steps you need to take and timelines to follow, to consider your rights, your options, and the hard choices you have to make. You do have options, but taking no action, in lieu of considering your options is not a choice, and defaulting with no action means foreclosure, which will stay on your credit history for 7-10 years.
However, if none of the options work for you there is the option to sell your property short, AKA a Short Sale, that is where I can help facilitate and negotiate a sale to meet the bank’s agreed to terms to a short payoff for the loan obligation. The general understanding with a short sale versus a foreclosure is that your credit still takes a long-term hit, but the wait time to buy another home post short sale is not as long as a foreclosure.
FORECLOSURE TIMELINE:
1st Day: Notice of Default is recorded
14th Day: Notice of Default must be mailed to borrower, 10 business days after recordation.
91st Day: Notice of Trustee’s Sale, recorded, published in a newspaper, and mailed (lenders usually file 31 days before the sale of an IRS Notice Requirement).
115th Day: Deadline to Cure the Default (five business days before trustee’s sale).
122nd Day: Trustee’s Sale (Deadline to payoff loan is anytime before the Trustee’s sale begins).
Mary Ann Cadorna Broker-Owner Sincerity Realty, my goal is to help, and I truly empathize with what you are going through with a Notice of Default. That said, I am here to sincerely be of service to you. You may contact me for a Zoom, Facetime, phone call, or face-to-face meeting all by appointment, for a free consultation. Informing you of your options is first and foremost, and should you decide on a short sale, I come out of the 2008 Housing crash having helped many people, buy and sell successfully!
DISCLAIMER: The preceding provided is for information purposes and offers a general understanding of topics relating to the subject matter of real estate. It is not in lieu of legal advice, you should contact a lawyer or law firm, and or any other professional for specific questions or concerns, regarding your specific circumstances.
Life happens and there is no shame in being behind, but if you can’t save the house, you’ve got to save the people in it.
