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 Action

    The legal proceedings initiated by a lender in the case of mortgage ...
  3. Delinquent Mortgage

    A mortgage for which the borrower has failed to make payments ...
  4. Short Refinance

    The refinancing of a mortgage by a lender for a borrower currently ...
  5. Voluntary Foreclosure

    A voluntary foreclosure is a foreclosure proceeding that is initiated ...
  6. Serious Delinquency

    When a single-family mortgage is 90 days (or more) past due and ...
Related Articles
  1. Investing

    The 6 Phases Of A Foreclosure

    For many, foreclosure is still a real possibility. Make sure you're prepared and know the steps.
  2. Investing

    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.
  3. Investing

    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.
  4. Investing

    Saving Your Home From Foreclosure

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

    Avoiding Foreclosure Scams

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

    5 Ways To Avoid Foreclosure

    If you go into default on your mortgage payments, don't worry, there are still ways to save your home.
  7. Personal Finance

    Avoid Foreclosure: How To Handle An Underwater Mortgage

    Foreclosure is the biggest fear of any struggling homeowner. These tips just might save your credit rating.
  8. Personal Finance

    How to Work With Your Lender if You Can't Pay Your Mortgage

    Homeownership is a dream but when you can't pay your mortgage it becomes a nightmare. In the wake of the housing meltdown lenders are more willing to help.
  9. Investing

    Buying Foreclosures At A Bargain Price

    Learn how to buy a foreclosed home at a discount.
  10. Investing

    What Is A Short-Sale Property & How Does It Work?

    A short sale is an alternative to foreclosure whereby indebted owners get permission from a bank to sell their house for less than amount of the mortgage.
RELATED FAQS
  1. How Many Mortgage Payments Can I miss Before Foreclosure?

    The status of your lender and the condition of your local housing market are some of the factors that determine how many ... Read Answer >>
  2. My mortgage payments are no longer affordable; is there anything that I can do to ...

    The most important thing for you to remember if you find that you may not be able to make this month's mortgage payment is ... Read Answer >>
  3. What’s the Difference Between a Mortgage Lender and a Mortgage Servicer?

    Buying a home is an exciting and confusing process. Once the loan is secured, it's important to know who gets the payment: ... Read Answer >>
  4. 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 >>
Trading Center