Notice of Default

[okane]

I have not made my house pmt since March, and today I got a certified Notice of Default letter, it says to pay within 30 days from letter if I want to fix this default. It says if default is not cleared within the next 30 days, they will accelerate the sums due under the terms of the mortgage, and foreclosure and public sale of property will follow if the funds are not received within 30 days of the letter. So do I have only 30 more days to pack and move out of the house? or is there another step after the 30 days that will give me more time. Thanks.

[Sweetpea3829]

You definitely have more than 30 days...but others on here are much better versed and researched on how much time you may have after the 30 days acceleration comes due. Good luck!

[sh9730]

IF this letter is just from your bank, its just a scare letter. You will KNOW when you have officially been served a NOD. Most states require that when the official NOD is sent, it also must be filed with your county recorder. Most likely you will get a letter in another month saying they are accelerrating, again, that is just another step. Eventually you will get an official NOD, but even then in MOST states you still have at least 90 days beyond that.

Check your county website to see if they have started any official foreclosure stuff.

[debee]

Check your mortgage docs for a "power of sale" clause. If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure will be followed.

Otherwise, you should get 90 days from the NOD before they start a countdown of 21 days to the actual auction. (Following that, maybe a few more weeks and a possible cash-for-keys deal?)

So that's roughly 111 days from NOD. That would be the fastest. Some areas are a lot slower. There are people on the forum that have been living rent-free for over a year!

[okane]

Where do I look for this info on my county website? Search property and property tax info area on website?

[Wantmypeace]

We have family living across the street from us who have not paid rent in almost 3 years. Every month, they are told that the Sheriff's sale has been put off another month. We're in the Central Valley in CA. You just never know until you get the actual paperwork, and even then, you probably have a little more time...

[upward]

What is Power of sale clause? We are in Ca. and just received the letter to cure our loan, which we are not going to do. We were discharged in 2/2008 and have decided to move on. We have been paying on the first and were just told it was going up $600 a month. We have not paid on the 2nd in over a year. Upside down over $150K. Owe 340K on first and 75K on second.

[debee]

If you check your mortgage documents you'll find a section which usually has bold print or a heading identifying it so you can find it and read the terms outlined there. It won't give your lender rights to a speedier foreclosure. They will still have to follow the procedure/timeframes as outlined by the state. The power of sale clause permits the lender to foreclose without having to go to court.

[laurannm]

upward - If I may ask, are you $150k underwater on the first mortgage alone, and yet the 2nd lender is starting the foreclosure process (i.e. you received the NOD)?

[upward]

laurannm- Our first is 340K and our 2nd with Wells Fargo is 75K we owe a total of about 410K . The house is worth about 240K right now. We stopped paying on the 2nd a year ago. It's basically just sitting there. We were notified from Aurora, our first, that our payment was now going to be principal and interest and would be going up almost 700.00 a month. At this point we are done. I'm not going to continue to pay on a sinking ship. We have not gotten a NOD yet. They have been sending me something in the mail almost daily. We were going to turn in the paperwork for a loan mod, then thought maybe we would try to short sale. The loans were both discharged in the BK in 2008. I really don't want a forclosure on my credit, as we are just starting to get back on track and just started our own real estate company. Wondered about a deed in lieu but don't think that is an option with the 2nd.

[debee]

Where do I look for this info on my county website? Search property and property tax info area on website?

If you can't find it on their website, call the county recorder's office and ask them how you find out if an NOD has been filed on your property.

[laurannm]

Upward - thanks for the details. FYI, since both your mortgages were IIB and not reaffirmed, the foreclosure won't show up on your credit report (it should be reported currently as IIB\Closed)