Notice of Default: this is the legal definition:
Step 1
A notice of default is a notification given to a borrower stating that he or she has not made their payments by the predetermined deadline. It dictates that if the money owed (plus an additional legal fee) is not paid in a given time, the lender may choose to foreclose the borrower's property. Any other people whom may be affected by the foreclosure may also receive a copy of the notification.
You have most likely received this notice "NOD" becuase you have not made payments for 3 months. Now the Foreclosure process has started you have aproximately 90 day until it goes to sale.
Step 2
The Foreclosure process:
Defaulting on one's loan causes the start of foreclosure aka NOD, the process by which the lender takes over the home in order to recover their principal investment. Once the house is either sold at auction or "repossessed" by the lender, it is sold and the former owner must vacate at the discretion of the new owner. When there is a power of sale clause in the deed of trust the non-judicial process of foreclosure is used.
In California, the timeline of non-judicial foreclosure begins when the trustee files a notice of default. This is a letter which is sent to the owner/trustor notifying him or her of their default of the loan. This notifies the owner of the intent of the lender to follow through on their right to collect on the debt. The copy of the notice, which is recorded at the County Recorders Office of the appropriate county, is mailed to the address of notice as per the deed of trust. Recording of the notice of default can vary greatly depending on the beneficiary.
It can occur between a week to many months after one misses their first mortgage payment. The step that follows next is the stage of the foreclosure process in which there is a filing of the Notice of Trustee's Sale. No sooner than ninety (90) days after the trustee records the Notice of Default, the Trustee must publish a notice of trustee's sale in the local paper and simultaneously file that notice with the county recorder's office. No sooner than twenty days (20) after the notice of trustee sale is filed, the home may be sold at public auction for the amount of the debt plus foreclosure costs. If no one bids at the auction, the lender assumes ownership of the property, and may dispose of that property to recover their cash investment.
You can avoid this by speaking with a real estate agent that understands the process and can negotiate with the bank a " short sale", the benefit to you is that one it might buy you some more time and second a "foreclosure" will not appear on your credit, this is very important if you even plan to buy again. If you are in Los Angeles I can help Luis Pezzini 310-275-2076.
What is a Short Sale?
A short sale means the seller's lender is accepting a discounted payoff to release an existing mortgage. Just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accepts it.
Be aware that the seller need not be in default -- to have stopped making mortgage payments -- before a lender will consider a short sale. A lender may consider a short sale if the seller is current but the value has fallen. The seller may have over-encumbered, owe more than the home is worth, so a discounted price might bring the price in line with market value, not below it.
Hold on to your cash!!!!
There are many companies out there "Loss Mitigation" companies that will charge you thousands for the same thing an experienced real estate will do as part of their job, hold on to your money!!!
Call me today Luis Pezzini 310-275-2076 or 800-817-6903
Time is of the essence!
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