Notice of Default - California

Notice of Default is a legal document that was released by the California Department of Financial Protection and Innovation - a government authority operating within California.

FAQ

Q: What is a Notice of Default?
A: A Notice of Default is a legal document filed by a lender when a homeowner fails to make mortgage payments.

Q: Why is a Notice of Default filed?
A: A Notice of Default is filed when a homeowner is in default on their mortgage payments, indicating that they are in danger of foreclosure.

Q: What happens after a Notice of Default is filed?
A: After a Notice of Default is filed, the homeowner is given a certain period of time to make up the missed payments and bring their mortgage current.

Q: How long is the grace period after a Notice of Default is filed?
A: The grace period after a Notice of Default is typically around 90 days, but this can vary depending on state laws and the terms of the mortgage.

Q: What happens if the homeowner does not bring their mortgage current during the grace period?
A: If the homeowner does not bring their mortgage current during the grace period, the lender can proceed with the foreclosure process.

Q: What are the consequences of foreclosure?
A: Foreclosure can result in the loss of the homeowner's property, damage to their credit score, and difficulty obtaining future loans or mortgages.

Q: Can a homeowner stop the foreclosure process after a Notice of Default is filed?
A: Yes, a homeowner can potentially stop the foreclosure process by working out an agreement with the lender, such as a loan modification, payment plan, or short sale.

Q: Can a homeowner stay in their home during the foreclosure process?
A: A homeowner can typically stay in their home until the foreclosure process is completed and the property is sold, but this can vary depending on state laws and the specific circumstances.

Q: What should a homeowner do if they receive a Notice of Default?
A: If a homeowner receives a Notice of Default, they should contact their lender or a housing counselor immediately to explore their options and possible solutions to avoid foreclosure.