A notice of default or NOD is filed by the lender in the county where the property resides stating the borrower has not made the mortgage payments. The NOD has the amount past due, all legal fees incurred, and the date by which the borrower has to pay these. If the borrower does not pay the amount on the NOD, then the lender can start foreclosure proceedings.

Notice of Default Defined

Usually, it takes about 3 or 4 missed payments in a row for the notice of default to be filed. It just depends on the lender. After it is filed at the county, you will be notified by mail or in some states you will get a document posted to your front door.

An NOD is part of public records and also is reported on your credit report. Because it is part of public records, borrowers may get contacted by “foreclosure hunters” as soon as it gets filed. They may send letters, call, or actually come by the home. Consult with a legal adviser before signing anything.

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