What happens when I receive a notice of default?

A notice of default is the first step in a foreclosure proceeding. You get this notice through the mail when you fail to make your payments on your mortgage. The notice will contain the amount of money that you need to pay to update your account's status and make it current. It will also contain the specific data wherein payment should be made so that no further action is to be taken against the borrower. More importantly, the notice will let you know what the lender will do in case no payment is made within the specified deadline.

With the notice of default at hand, the property owner should be alerted to the fact that the lender has a lien on the property and will commence foreclosure proceedings in the event that the terms of the notice will not be satisfied. You should contact your lender in case you do not have yet the money to make your account current. Lenders will allow you to modify the terms of your payments depending on your situation. Just make sure that you get in touched before the foreclosure proceeding commences.

If you want to keep your home do not wait for the notice of acceleration, which is already demanding you to pay all of the balance in full. This will already be risky since you need to get a new loan to keep the mortgage current. You may not have the time to secure a sizeable amount of money until the given deadline.

As soon as you receive the notice of default, contact your lender and work out a plan.