If you’ve gotten a foreclosure notice of default and want to know what the heck is going on, keep reading.
Basically, a foreclosure notice of default is a document that has to be filed by a lender to start the process of foreclosure. Many Ohio mortgages have a provision that requires the lender to send a notice, commonly called a “breach letter,” informing you that the loan is in default before the lender can accelerate the loan.
The foreclosure notice of default must be sent to anyone who has an interest in the property (any other loans, lenders, or even contractors who are owed money for work done to a property will get a copy).
The foreclosure notice of default must also be published in a newspaper and physically posted in a prominent place on the property itself.
Although this can be really embarrassing to someone going through foreclosure, it’s actually a very important protection for consumers. The breach letter gives you a chance to cure the default and avoid foreclosure.
Back before US law required a notice of default, people were sometimes foreclosed on without any warning.
In fact, it’s happened even in the past few years – at least one bank has accidentally foreclosed on the wrong property and kicked people out of their house without due process or warning. It’s even happened around Cleveland.
The notice of default is a very important step within the foreclosure process that gives people with an interest in the property to step forward and claim their rights – before it’s too late.
If you’ve received a notice of default, don’t wait. Time is definitely of the essence, and you should take action.
Here are a few key steps you should take:
1) Stay calm and don’t panic.
This may sound obvious, but it’s probably the most important. Anyone in foreclosure is dealing with a lot of stress beyond just the property. These situations don’t happen overnight, and they take a while to solve. You’ll get through it by practicing good coping techniques and taking good care of yourself and your family. Panic leads to bad decisions, so stay cool.
- Clear Your Mind. Do whatever it takes to calm your mind and gain clarity. Walking or exercising usually work best or simply go out for a little, just to get away from the home environment.
- Determine The Desired Outcome. Understand the situation and agree on the desired outcome.
- Prioritize Key Factors. Decision making requires assessing many factors, including the quality of data you have access to, the impact that the decision will have on your situation, the experience you have with similar decisions, options available and the cost of delay. Try to balance the factors in real-time, putting more attention on those that are time-sensitive, complex and impactful.
- Prepare For Potential Consequences. You should carefully consider all of your choices and the potential consequences of each.
2) Educate yourself.
Learn everything you can about the foreclosure process in your state so that you know what’s happening and what’s coming up next. Once you understand the process, you can make the most of your situation and, hopefully, work out a way to save your home or at least get through the process with as little anxiety as possible.
3) Gather your resources.
There’s also many non-profit and government resources available out there who offer to help people with a foreclosure notice of default. You’ll want good legal and tax advice along the way. Definitely don’t try to do it all yourself. This stuff is super complicated with lots of rules that are constantly changing.
4) Learn your options.
We’re here to help you avoid foreclosure. We buy houses with cash. We can help you with short sales and even rent-back situations so you (potentially) may be able to keep living in your home. There are many more options than you think, even after a foreclosure notice of default has been filed. We are local and will meet with you in person to discuss your situation and possible options to help.
5) Communicate.
The banks involved don’t want your property. They want money, and what you say matters a lot. You can slow down or stop the foreclosure process if you take the appropriate action.
Want to know more?
Call us anytime
or connect with us on our websiteand we’ll lay out all of your options for your specific situation.