Question: What is a Notice of Default?
Answer: A Notice of Default is a legal action giving Public Notice that loans or other liens on your property are delinquent and the lender or the lien holder intends to foreclose in a Trustee's Sale if the payments are not brought current.
Question: What is meant by Public Notice?
Answer: Public Notice means that information about your property is now made available to the general public.
Question: What information is made public?
Answer: The public becomes privy to data pertaining to your deed of trust, including the property address, the amount of arrears, the legal description of the property, dates of recordings, who is filing the notice, and other general information.
Question: Where is this information filed?
Answer: It is filed in the Office of The County Recorder in the County in which the property is located.
Question: When the Notice of Default is filed, does it mean that I have already lost my property to foreclosure?
Answer: No. The Notice of Default is filed by the lender or his representative and it initiates the beginning of the foreclosure process.
Question: Can I save my property from being taken through the foreclosure process?
Answer: Yes. You do have options but you must decide what you are going to do and act in a timely manner.
Question: What are my options?
Answer: You, more than anyone else, know your financial situation. Many people try to hang on to what they have, knowing that their financial burden is too great for them to handle.
Your best option is to bring your arrearages current immediately because the longer your wait, the more late fee's and charges and additional monthly payments, along with foreclosure fee's, will be added to the amount you will have to pay to get your loan reinstated.
If you can't pay the full amount, talk to your lender and try to negotiate a reduced payment plan
If you know you can't come up with the money to bring your payments current and make your monthly payments afterward, selling the property may be the best solution for you. It may be a good idea to talk to a Realtor about property values in your neighborhood just to get a professional opinion.
Bankruptcy is another option. By filing bankruptcy, the foreclosure process is immediately stopped and a repayment plan can be worked out under court supervision.
If you decide to file bankruptcy, it is advisable to contact an attorney, especially now that bankruptcy laws have been changed.