Receiving an official Notice of Default from your lender means that they have officially started the foreclosure process. A Notice of Default, or NOD, is issued by your lender’s attorneys after 3 or more missed mortgage payments. At this stage of the foreclosure timeline, the bank will let you know how much must be paid in order to bring the account current – which after fees and penalties is typically an insurmountable number. This doesn’t mean that you can’t stop the foreclosure after receiving a Notice of Default.
Finding the funds to pay the arrearages is an unlikely solution for most homeowners, as financial problems are typically at the heart of the issue. Most homeowners first reaction is to contact their lender and submit a package for a loan modification. New foreclosure laws in California prevent the lender from legally progressing the foreclosure process during a loan modification, but that doesn’t mean they always follow the rules. If your lender progressed the foreclosure process while you were in review for a loan modification, you may be able to file a lawsuit for the violation.
In some cases, the lender may not have violated the law, leaving you as the homeowner with less options. Filing bankruptcy to stop foreclosure after receiving an NOD is a good option for many Californians. While the idea of filing Chapter 7 or Chapter 13 Bankruptcy is a scary proposition for many people, taking that step actually benefits thousands of homeowners every year.
How Long Do You Have to Take Action?
Most people want to know how long it will take for their lender to foreclose after issuing a Notice of Default. If no action is taken, the lender can issue a Notice of Trustee Sale 90 days after the Notice of Default. The Notice of Trustee sale gives about 30 days notice prior to the foreclosure auction. So – at minimum, it takes 110-120 days between the notice of default and foreclosure date.
While you may not need to take action immediately, depending on your legal options for stopping the foreclosure, it’s wise to contact a foreclosure attorney immediately. The sooner that you contact a foreclosure lawyer for legal advice, the better – as you have more options to stop the foreclosure process given more time.
Free Consultations with Our Foreclosure Defense Attorneys
Our Los Angeles based Law Firm offers free legal consultations for Californian’s facing foreclosure. All you have to do is call us. We will go over some preliminary information with you to get an idea of your situation, and work with you to develop a custom foreclosure defense plan to make sure you save the home. We’ll also discuss any fees associated with our services so that you have a clear picture of what steps it will take to stop the foreclosure.