If you’ve recently received a foreclosure notice of default and want to know what is going on, keep reading.
A foreclosure notice of default is a document filed by a lender to begin the process of foreclosure due to non-payment of an existing loan against a property. It may seem scary but don’t worry this is the first step in a long process and there is still plenty of time to take action.
This notice is not only sent to you but to anyone who has an interest in the property (other note holders, lenders, or even contractors who may have filed a lien for work they completed).
The foreclosure notice of default will also be published in the local newspaper and often times posted in a prominent place on the property itself.
Although this may seem embarrassing to someone going through a foreclosure, it’s actually a very important protection for the property owner.
Before US law required a notice of default, people were being foreclosed on without any warning.
In fact, this practice has continued even in the past few years – at least one bank has accidentally foreclosed on the wrong property and kicked people out of their house without due process or warning. It’s even happened around Reston.
The notice of default is a very important piece in the foreclosure process that gives people with an interest in the property a chance to step forward and claim their rights – before it’s too late.
If you’ve received a notice of default, don’t delay. Time is of the essence, and you shouldn’t wait. Take action right away and contact a local agency or experienced home buyer like Sell Simpli.
Here are a few key steps you should take:
1) Stay calm, don’t panic and don’t wait.
This may sound obvious, but it’s probably the most important. Anyone who is going through foreclosure is dealing with a lot of stress beyond just the property. These situations don’t happen overnight, and they may take a while to solve. You’ll get through it by staying calm and taking action right away. Panic and procrastination lead to bad decisions, so try to stay cool and reach out for help as soon as you receive the notice.
2) Educate yourself.
Learn all that you can about foreclosure in your state so that you know what’s happening each step of the way and what to expect next.
3) Gather your resources.
There are many non-profit and government resources at your disposal. You’ll want to find good legal and tax advice along the way as well. Don’t try to do it all yourself, it can be very overwhelming and complicated so talk to a local expert.
4) Learn your options.
We can help you avoid foreclosure and all of the negative impacts it can have on your life and specifically your credit for up to seven years. We buy houses as-is with cash, but we can also help you with short sales, selling subject to the existing mortgage, and even rent-back situations so you (potentially) may be able to continue living in your home. You have more options than you may think.
5) Communicate.
Believe it or not the bank doesn’t actually want your property. All they want is to be paid their money and what you say matters a lot. You can slow down or stop the foreclosure process if you take the appropriate action.
Want to know more?