First, don’t panic.  If you have received a notice of default, it means that your mortgage company is starting the foreclosure process.  You still own your home, but if you don’t do something quickly about it, you will be foreclosed on. 

If you find yourself in this situation, the first thing you should try to figure out is if you can pay back the amount owed to your bank either out of your own funds to bring it current, or by selling the house if you have equity. If you are like a lot of people, you probably can’t bring it current and don’t have equity.  If that is you, you have some options.  You can try to get a loan modification, which would be great, but 90% of all loan mods are declined.  Not to mention they take many months to get a response.  You can try to get a deed in lieu, which means the bank simply takes over ownership of the property. This definitely has its obstacles, like settling any other liens on the property before they will even look at it among others.  Or, you can try to sell your house through a short sale. 

When a notice of default is filed, it means the bank is serious, and you should be too.  With that said, you still have time to work out an option other than foreclosure.  After an NOD is filed, the bank has to wait 90 days before they can file a Notice of Trustee Sale.  If you have received one of those, you have MUCH less time.  The Notice of Trustee Sale will actually tell you the date that the house will be foreclosed on.  It can be as little as 21 days from when the notice is posted. 

So, if you do nothing, you have a little less than 4 months before you will lose your house.  This is enough time to do a short sale and save your credit, among other financial implications. 

If you have received a Notice of Default, don’t wait.  The longer you wait, the less options you have.  Please contact us and we can help you navigate through them to help you make an informed decision.  

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