A Notice of Default, or NOD, is one the first steps in a non-judicial foreclosure. A Notice of Default is filed by your current lender at the local county recorders office. Receiving such a notice or learning of it being recorded means that your lender believes that you, the borrower, cannot repay the mortgage or bring it up to speed, and makes this a matter of public record.

You may want to investigate selling your home, or negotiating a sale-leaseback agreement if and only if you have exhausted all of your refinancing options.

Normally, you would have to be 90 or more days late (or behind) on your mortgage before a lender will file a Notice of Default. Once you are 120 or more days behind (four months or more), you can be certain that your lender will file a Notice of Default in short order.

A Notice of Default is one of the first of many steps in the foreclosure process.

After a Notice of Default is filed and the foreclosure process is started you can still take appropriate measures to try to save your home and keep your house. One method is to contact a mortgage broker to see if there is any way that you can refinance your home. When your home is in foreclosure, it is generally more difficult to refinance as the lender will usually have much tighter guidelines. However, many people across the country refinance out of foreclosure every day. If you are behind on your mortgage even one payment or you know that you are beginning to have financial problems it may be worth your time to look into refinancing early on before you get too far behind and a Notice of Default is filed on your home.

A Notice Of Default is usually issued after you payments have not been made for 90 days. Nods can be very damaging to your credit rating.If you feel you may be falling behind on one or more payments contact your mortgage broker. There are speacial programs that can help you catch up.

If you decide to try and refinance after a NOD you will need a fair amount of equity in the home. Most foreclosure lenders will only lend at between 65-75% of the homes value. In most cases you can also expect an interest rate over 10%.

 

 ++