What is a Notice of Default?

A Notice of Default is a declaration that someone has not made timely payments. In the case of mortgage lenders, a lender can put an official notice in the public record to state that payments have not been made.

The laws differ from state to state, but usually there is a number of days that a lender must wait before they can file a Notice of Default. Once the lender has let this time period pass, they can file the notice and then must wait for another specified period of time. It is during the waiting period after a Notice of Default has been issued that a borrower can make up for missed payments. If a borrower can do this, then they will be able to keep their home and the loan will no longer be in default.

Once a Notice of Default has been issued, some people refer to this a pre-foreclosure.
Nothing with the word “foreclosure” in it is cheerful, but the “pre” means that there is a chance that foreclosure can be prevented.

If you have gotten such a notice and are foreclosure you may feel defeated, but this is not the time for inaction. Work with your lender to come up with a solution and stay in your home.