Notice Of Default

AAA

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.

INVESTOPEDIA EXPLAINS '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 - FCL

    A situation in which a homeowner is unable to make principal ...
  2. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  3. Strategic Default

    A deliberate default by a borrower. As the name implies, a strategic ...
  4. Default Rate

    This rate can be used in reference to two main things: 1. The ...
  5. Credit

    1. A contractual agreement in which a borrower receives something ...
  6. Default

    1. The failure to promptly pay interest or principal when due. ...
Related Articles
  1. Avoiding Foreclosure Scams
    Personal Finance

    Avoiding Foreclosure Scams

  2. Saving Your Home From Foreclosure
    Options & Futures

    Saving Your Home From Foreclosure

  3. What You Need To Know About Bankruptcy
    Retirement

    What You Need To Know About Bankruptcy

  4. 10 Steps For First-Time Home Buyers
    Home & Auto

    10 Steps For First-Time Home Buyers

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center