What is a notice of default for a commercial foreclosure?

Every state has different foreclosure laws.  Commercial and residential foreclosures are conducted by judicial or non-judicial process.  A commercial lender will send a business owner a notice of default when the owner defaults on their commercial mortgage.  Usually, the lender waits until the owner is at least 90 days behind in theircommercial mortgage before they institute foreclosure proceedings. Sometimes it is as long as 6 months.  The notice of default is sent certified mail and must include the total amount of the debt in order to reinstate the loan and the date in which the reinstatement must take place in order to avoid foreclosure.  The commercial lender must notify the borrower if they are going to foreclose by sending them a notice of foreclosure sale. The notice must state the total amount due on the loan, the date, time and place of the foreclosure sale. The notice must be published in the county where the property is located. The lender will start eviction proceedings if the owner or tenants have not vacated the property.  Your lender may also be able to obtain a deficiency judgment against the borrower after the foreclosure sale depending on state laws.  A deficiency judgment is the difference between the sale proceeds of the property received at the auction and the amount the borrower owes on their loan.   

If you are facing a commercial foreclosure, you should contact a commercial foreclosure defense attorney for advice. The attorney can advise you of all your options and legal rights. The attorney can assert legal defenses to stop the foreclosure and also negotiate with your lender to find a resolution such as refinance, mortgage modification or forbearance.