How many of us really know what a Notice of Default is? We understanding that if we receive one of these, we are having trouble paying our mortgage or property taxes. That's correct, but do you know how it can affect you in the future? According to the California Foreclosure, LLC, A Notice of Default is the first step in the foreclosure proceedings. The document is recorded at the request of the lender by the trustee and is recorded in the county in which the property is located. This recording gives constructive notice to the public.
After recording of the Notice of Default, in the state of California, the borrower and junior lien holders are given proper notification and the borrower has 90 days to bring their account current. The period is referred to as the Reinstatement Period. This time period may very in other states.
What I'm finding in southern California is that people don't understand that have only 90 days to take action on this default, which is one reason why many homes are going into foreclosure. So what kind of action can be taken? Well, here are a few suggestions to what should be done if you have a mortgage Notice of Default.
If you received a Notice of Default, the first thing is don't go into denial. You need to take action NOW. If you tackle this issue head on, the outcome will work in your favor.
•1. Take a look at why you are having difficulty making your mortgage commitments? Did you lose your job; do you have other payments like a car payment and credit card debit that are dragging you down; is it hard for you to stick to a budget; or did your mortgage payment just adjust to a higher payment? After you have analyzed where the problem is stemming from, you can take action on that one specific thing.
•2. Next you need to find a way to stop the bleeding so you can repair the damage and get your mortgage payments current. If you have too much debit, can if be consolidated at a lower payment. If you lost your job will your lender give you a reprieve from payments for a couple of months if you pay off some of the outstanding balance? If you can't stick to a budget and are continually short of cash every month, should you think about getting out of this debt to a much simpler lifestyle?
These steps may seem easy and simple for many of us, but do the people really do them? No they don't. Why not? Because most of them are in denial and don't know where to turn in there need for help. Having been in the mortgage and real estate business for many years I'm finding that a lot of people are coming to me for advice on what to do. I can offer many options, but that won't solve the problem, action will. So don't put down that notice to look at it later. Take action NOW. Pick up the phone and call someone in your area that can help.
Mary Morris, Consultant
Pacific Sands M & R
(800) 823-0209
Comments(1)