Does a NOD guarnatee forclosure?

[yoyoma51]

If you receive a NOD, let's say on your second, does that mean they WILL start foreclosure or just that they CAN? Is the NOD sometimes used just to scare one into paying?

The first and second are with the same lender, current value of home is about what is owed on the first.

Did not reaffirm in Ch. 7.

Continue to pay first. Second is only about $17k.

[justbroke]

An NOD doesn't guarantee foreclosure. It, however, is a good indication that the lender intents to foreclose. As you may already know, a lender is not require or compelled by any law or anything in your Mortgage... to actually foreclose. It's an "option" for them.

An NOD is a procedural measure which would allow them to foreclose. In most States, they must do one before the other to make it all legal. In all likelihood, unless you have equity or will soon, the 2nd will write off the amount, sell it to a Junk Debt Buyer (JDB), and they'll sit on it until the earlier of an attempted sale of the home, or equity starts showing up.