If you’ve gotten a foreclosure notice of default and want to know what in the world is going on, keep reading.
Let’s start with the definition of foreclosure according to Webster’s dictionary. Foreclosure is the action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments:
And the Webster’s dictionary says that the definition of default is failure to fulfill an obligation, especially to repay a loan or appear in a court of law:
So, basically a foreclosure notice of default is a public notice filed with a court that states that the borrower of a mortgage is in default on a loan and the bank will gather evidence and produce documents that have to be filed by the lender to start the process of foreclosure.
The foreclosure notice of default must be sent to anyone who has an interest in the property (any other loans, lenders, or even contractors who are owed money for work done to a property will also get a copy).
The foreclosure notice of default must also be published in a newspaper and physically posted in a prominent place on the property itself.
Although this can be really embarrassing to someone going through foreclosure, it’s actually a very important protection for consumers.
Back before US law required a notice of default, there were people who were sometimes foreclosed on without any warning.
In fact, it’s happened even in the past few years – to the homeowner’s horror at least one bank has accidentally foreclosed on the wrong property and kicked people out of their house without due process (legal matters being resolved according to rules established) or warning. It’s even happened around West Paducah.
The notice of default is a very important step within the foreclosure process. Because it gives people with an interest in the property time to step forward and claim their rights – before it’s too late.
So, if you’ve received a notice of default, don’t wait. Time is definitely of the essence, and you should take action.
Here are a few key steps you should take:
1) Stay calm and don’t panic.
This is going to sound obvious, but it’s probably the most important. Anyone in foreclosure is dealing with a lot of stress beyond just the property. Especially if you have family or the home has a lot of sentimental value. You’re not going to find yourself in this type of situation overnight, and it can take a while to solve. Which is why if you find yourself in this predicament you don’t waste time but get the help you deserve quickly. You’ll get through it by practicing good coping techniques and taking good care of yourself and your family. Panic leads to stress and stress can cause bad decisions, so stay cool.
2) Educate yourself.
Learn everything you can about the foreclosure process in your state so that you know what’s happening and what’s coming up next. That way there is nothing that can take you by surprise.
3) Gather your resources.
There are also many non-profit and government resources available out there for you to contact. You’ll want good legal and tax advice along the way. Definitely don’t try to do it all yourself. This stuff is super complicated with lots of rules.
4) Learn your options.
First off, we’re here to help you avoid foreclosure however we can. So, we buy houses with cash. We can help you with short sales and even rent-back situations so you (potentially) may be able to keep living in your home. There are many more options than you think.
5) Communicate.
Communication is the key here. The banks that are involved, they don’t want your property. They want money. And what you say matters a lot. You can slow down or even stop the foreclosure process if you take any of these appropriate actions.
Intrigued? Want to know more?