Uh, Oh! Im in BIG Trouble

Long Beach Home Loans

Notice Of Default - NOD

If you receive a notice of default (NOD) for your mortgage, you need to act quickly.   A NOD is a notification given if you have not made payments by the predetermined deadline (usually specified in your Deed of Trust).  It spells out repayment  (sometimes called curing) schedules and outlines  the foreclosure process and timeline.

You have until five business days before the foreclosure sale to cure the default. To cure the default you have to pay off missed payments, late charges, and fees for initiating the foreclosure. If you do not cure the default, the trustee can take steps to hold a foreclosure sale.

Steps to take if you receive a NOD:

 

1)  See if you agree with the amount the trustee says is due. If you do not believe you owe the amount claimed, write a letter as soon as possible disputing the amount, with copies of the proof of payments. 

2) If you owe the money, and have equity in your home, contact us immediately.  We have private investors who may lend you up to 70% of the value of your home. Most banks or mortgage companies will not lend you money once a NOD is filed.

3)  You might consider a 'work out agreement' .A lender may give you more time if you have a definite plan for repayment. If the lender agrees to give you more time to repay the loan, that agreement should be in writing. These agreements are commonly known as work out agreements.

4) If you can not get a loan or secure a work out agreement, you should consider selling your home before you lose it in foreclosure. Selling the home may allow you to save your equity and protect your credit. This may help you in relocating to a new home.

Bankruptcy may not save your home.  It may delay the foreclosure process but the lender has certain rights as defined in your Deed of Trust.  If you contact an attorney, they usually offer bankruptcy as an alternative.
 
'Foreclosure Specialists' often contact homeowners who have received a notice of default. They may claim they can prevent the foreclosure, and may even suggest that you transfer title to your home to them. Be wary of these buy/leaseback agreements.

Other Articles:

HARD MONEY:  What the heck is that?

HARD MONEY:  Apartment Loans

HARD MONEY:  7 Tips for Borrowers

Posted on June 16, 2007 04:30:02 by Brian.Brady

Comment from: Joe [Visitor] · http://www.longbeachrealestatehome.com/uh-oh-i-m-in-big-trouble

I own 2 homes, 1 im living in and one I am renting out, the lease on the rental is up and the person who was renting it no longer wants to, and i cant find anbody to rent even for 600 dollars less then my mtg payment on that rental. My question is if i do a "deed in leu of foreclosure" to my lender will this cause problems with my current home, or are both homes completely separate? I can afford to keep one home but not  2 and cant sell my rental because the value of the home is worth 30,000 less then what i owe. I guess i am willing to suffer a credit hit worst case scenario because i could live in my current home for 6 to 7 years no problem, but what other negatives will there be if i sign my second house over to the lender?

Permalink January 07, 2008 14:37:48

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