Notice Of Default

DEFINITION of 'Notice Of Default'

A public notice filed with a court stating that a mortgage borrower is behind in payments. This is one of the first steps toward foreclosure, and if the borrower does not pay, the next step is for the lender to file a notice of sale for the property. However, if the borrower catches up on his or her payments, the foreclosure process can be halted.

BREAKING DOWN 'Notice Of Default'

Lenders have different procedures and timeframes for filing the notice of default. Some are more forgiving and more willing to work with borrowers and may take longer to file the notice, while other lenders will file the notice as soon as they may legally do so. Having a notice of default filed against you can go on your credit report and adversely impact your credit score, making it difficult to refinance your mortgage and to obtain other types of credit.

RELATED TERMS
  1. Foreclosure Filing

    The initial legal process of selling a mortgaged property that ...
  2. Foreclosure - FCL

    A situation in which a homeowner is unable to make principal ...
  3. Serious Delinquency

    When a single-family mortgage is 90 days (or more) past due and ...
  4. Notice To Creditors

    A public notice to the creditors and debtors of an estate. The ...
  5. Judicial Foreclosure

    Foreclosure proceedings in which a mortgage lacks the power of ...
  6. Mortgage Short Sale

    The sale of a property by a financially distressed borrower for ...
Related Articles
  1. Financial Advisor

    Helping Clients Navigate Short Sales And Foreclosures

    Both buyers and sellers can benefit from a real estate professional experienced in dealing with short sales and foreclosures.
  2. Personal Finance

    Can You Dispute A Foreclosure?

    The bank has foreclosed on your mortgage, but do you really have to leave? Learn how to fend off the lenders and gain the time you need to save your home.
  3. Investing

    Saving Your Home From Foreclosure

    Learn the tactics you can use to prevent your home from being repossessed.
  4. Investing

    Avoiding Foreclosure Scams

    If you want to save your home, avoid bogus offers and take matters into your own hands.
  5. Investing

    Short Sell Your Home To Avoid Foreclosure

    Are you in danger of losing your home? Protect your credit score with a real estate short sale.
  6. Personal Finance

    Buying Foreclosures At A Bargain Price

    Learn how to buy a foreclosed home at a discount.
  7. Personal Finance

    Your Mortgage: When It's Time to Walk Away

    Mathematically speaking, walking away can sometimes be the most prudent choice. Find out how to run the numbers.
  8. Personal Finance

    How To Delay Foreclosure

    While losing a home can be a traumatic event for you and your family, it's best to find ethical means of delaying or avoiding foreclosure, even if it takes more time.
  9. Personal Finance

    Don't Get Trapped in a Zombie Foreclosure

    Understand how foreclosures work and you can avoid the disastrous consequences of having a zombie foreclosure.
  10. Retirement

    How Regulations Protect Reverse Mortgage Borrowers

    They're complex animals, which is why there are government guidelines in place to protect borrowers.
RELATED FAQS
  1. What is PMI, and does everyone need to pay it?

    Also known as "Primary Mortgage Insurance," PMI is the lenders (banks) protection in the event that you default on your primary ... Read Answer >>
  2. What is the difference between the Five Cs of Credit and credit rating?

    Learn the difference between the five C's of credit and credit rating and how they are used together by banks and finance ... Read Answer >>
  3. What is the 1003 mortgage application form?

    Learn about the 1003 mortgage application form, what information it requires and why this form is the industry standard for ... Read Answer >>
  4. Why does the loan-to-value ratio matter?

    Learn how the loan-to-value (LTV) ratio is calculated, and why this metric is important to lenders when evaluating a home ... Read Answer >>
  5. Does everyone have to file a federal tax return?

    This may come as a surprise to many individuals, but not everyone needs to file a federal tax return. According to the IRS, ... Read Answer >>
  6. How does a credit crunch occur?

    A credit crunch occurs when there is a lack of funds available in the credit market, making it difficult for borrowers to ... Read Answer >>
Trading Center