What is Default
Default is essentially the inability to pay your monthly mortgage payments in a timely manner. Failure to meet the loan obligation of making your mortgage payment, property taxes, and/or hazard insurance is a breach of your contract.
If you are in default for an extended amount of time, you will eventually go into foreclosure.
What is Foreclosure? What do I do?
One of the first steps of the foreclosure process is the recording of a Notice of Default or NOD. The NOD is recorded against the property in the same manner as a lien or a mortgage. Typically, a notice NOD is issued after three missed loan payments.
If you find yourself in the unfortunate situation of receiving a Notice of Default from your lender, do not delay in contacting them immediately. Even if you are unable to bring your payments up to term, it is still important to contact your lender to discuss your situation. If your financial problem is temporary, most lenders can work out a plan to keep your home from foreclosure.
If you and your lender are unable to reach a solution, it is time to contact a professional like Randall Romero and to assist you with your real estate needs.
Randall has spent year building relationships with almost every bank and lender across the United States. Lenders are not in the business of home acquisition due to the large expense the lender incurs when your home is put up for auction. For this reason, most lenders will work with Randall and his team to keep you out of foreclosure.
Time is of the essence. Through communication to your lender or with the assistance of a professional like Randall, you may be able to mitigate the damage to your credit.