notice of default (Nod)

UNDERSTAND YOUR OPTIONS. TAKE THE NEXT RIGHT STEP.

A Notice of Default is an important stage in the foreclosure process.
Learn about the timeline, key deadlines, and options that may still be available to help you determine your next step.

THE FORECLOSURE TIMELINE IN CALIFORNIA
(NON-JUDICIAL)

1. Notice of Default

Borrower is notified of the default and the lender’s intent to start foreclosure..

2. WAITING PERIOD

Minimum 90 days must pass before a Notice of Trustee Sale can be issued.

3. NOTICE OF TRUSTEE SALE

Issued after the waiting period. Sale date is set at least 20 days out.

4. TRUSTEE SALE

The property is sold at a public auction to the highest bidder.

5. POST-SALE PROCESS

If the property does not sell, it may revert to the lender (REO).

FREQUENTLY ASKED QUESTIONS

What is a Notice of Default (NOD)?

A Notice of Default is a recorded notice indicating that a borrower has fallen behind on their mortgage payments and the lender has begun the foreclosure process.

In California, generally at least 90 days must pass after the Notice of Default is recorded before a Notice of Trustee’s Sale can be recorded. Additional notice requirements apply before a foreclosure sale can occur.

Possibly. Depending on your situation and where you are in the foreclosure timeline, options may include reinstatement, a loan modification, refinancing, selling the property, or other alternatives.

Your options may include bringing the loan current, requesting a loan modification, refinancing, selling the property, pursuing a short sale, or exploring other available solutions.

Yes. Contact your mortgage servicer as soon as possible and ask to be reviewed for a loan modification. A modification may change your interest rate, repayment period, or other loan terms to make payments more manageable. Approval isn’t guaranteed, so keep track of foreclosure deadlines while your application is being reviewed. A HUD-approved housing counselor can also help you understand your options.

Submitting an application does not automatically cancel a foreclosure sale. Federal protections may restrict a sale while your servicer reviews a complete application received more than 37 days before the scheduled sale. Contact your servicer immediately to confirm your application status and keep track of all sale notices.

Start by contacting the company that collects your mortgage payments and asking about mortgage assistance. It may ask you to complete an application and provide financial documents, then review which options you qualify for. If offered a modification, you may need to make trial payments before the new terms become permanent. Keep responding to requests for information and tracking any foreclosure notices while your application is under review.

Requirements vary, but be ready to provide your mortgage statement, details about your financial hardship, proof of income such as pay stubs or tax returns, recent bank statements, and information about your monthly expenses and debts. Ask your mortgage servicer for its specific application and document checklist so you can submit everything it needs.

The full process can take several months. Once your mortgage servicer receives a complete application more than 37 days before a scheduled foreclosure sale, you should generally receive a written decision within 30 days. That 30-day period is for reviewing the application, not completing the modification. If offered a trial modification, you may need to make trial payments for a few months before the change becomes permanent. Keep track of foreclosure deadlines throughout the process.

Ask your servicer for the written reason. Depending on when it received your complete application, you may have a right to appeal the denial. You can also ask about other available options and get free help from a HUD-approved housing counselor.

The missed payments leading up to an NOD may already have affected your credit. Foreclosure-related activity can have additional credit consequences depending on your circumstances.

Yes. Acting early may give you more options. Consider contacting your loan servicer to discuss available alternatives and, when appropriate, a qualified real estate, mortgage, legal, or housing professional.

Have more questions? Contact us — we’re here to help.

YOU HAVE OPTIONS

Explore options based on your situation

  • Loan modification or reinstatement
  • Refinancing options
  • Sell the property
  • Short sale
  • Other solutions that may be available
EXPLORE YOUR OPTIONS

Reverse Mortgage FAQs

What is a reverse mortgage?

A reverse mortgage lets eligible homeowners borrow against their home equity. With a Home Equity Conversion Mortgage (HECM), you generally do not make monthly mortgage payments while you meet the loan requirements. Interest and fees are added to the balance, so the amount owed grows over time.

For a HECM, you must be at least 62, live in the home as your primary residence, and have enough equity to pay off any existing mortgage at closing. You must also complete counseling with a HUD-approved agency and show that you can meet ongoing property expenses.

Possibly. Late payments do not automatically rule you out, but the lender will review your payment history and finances. The new loan proceeds, together with any funds you contribute, must be enough to pay off your existing mortgage and other required amounts at closing.

It may be an option if you qualify and the loan can close in time to pay off the existing mortgage. Applying does not automatically stop a foreclosure sale. Contact your current mortgage servicer right away to confirm deadlines and discuss available options.

You will meet with a HUD-approved reverse mortgage counselor, submit an application, and have the home appraised. The lender will review your finances, property, and existing mortgage balance before deciding whether to approve the loan. If approved, you will review the final terms before closing.

The lender may request identification, proof of age, a mortgage statement, homeowners insurance information, property tax records, and documents showing your income and other financial obligations. Ask the lender for a complete checklist, especially if you have received a default or foreclosure notice.

The timing varies with counseling appointments, the appraisal, lender review, and any issues that need to be resolved. If a foreclosure sale is scheduled, tell the lender and your current servicer immediately. Do not assume the reverse mortgage will close before the sale.

Yes. The title remains in your name. You must continue to use the home as your primary residence, pay property taxes and homeowners insurance, and maintain the property. Failing to meet these requirements can cause the loan to become due.

Costs may include an origination fee, appraisal and other closing costs, mortgage insurance, and interest. Some costs can be paid from the loan proceeds, leaving less money available to you. Ask for a written breakdown and compare offers.

The loan generally becomes due when the last eligible borrower no longer lives in the home. Heirs may be able to repay the loan and keep the home or sell the home to repay it. Rules for a spouse who is not a borrower depend on whether that spouse qualifies for HECM protections.

No. Depending on your situation, you may also consider a loan modification, repayment arrangement, refinancing, selling the home, or other assistance. A HUD-approved housing counselor can help you compare options before you decide.

Ready to explore a reverse mortgage? Contact us to discuss your situation and the options that may be available.

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Mortgage Rates Disclosures

 

The advertised loan is a 15-year Fixed Rate Loan with a 15-year fully amortizing term. The interest rate is 5.250% for 180 months. The disclosed APR is based on the payment of 3.000 discount points. For a $726,200 loan, there is a 5.755% APR with a monthly principal and interest payment of $5,838 for 180 months. Interest rate quoted assumes a purchase with 45 day lock pricing at 60% loan-to-value (LTV), a minimum FICO score of 740 on a primary residence. Interest rate quoted assumes a purchase of a primary residence. The actual interest rate, APR and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Lender. Not available in all states. Payments shown do not include taxes or insurance, actual payment obligations will be greater. Not all applicants will qualify. Rates and terms are effective 9:00AM PT on 9/18/2024 and are subject to change without notice.


The advertised loan is a 30-year Fixed Rate Loan with a 30-year fully amortizing term. The interest rate is 5.250% for 360 months. The disclosed APR is based on the payment of 3.000 discount points. For a $726,200 loan, there is a 5.545% APR with a monthly principal and interest payment of $4,010 for 360 months. Interest rate quoted assumes a purchase with 45 day lock pricing at 60% loan-to-value (LTV), a minimum FICO score of 740 on a primary residence. The actual interest rate, APR and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Lender. Not available in all states. Payments shown do not include taxes or insurance, actual payment obligations will be greater. Not all applicants will qualify. Rates and terms are effective 9:00AM PT on 9/18/2024 and are subject to change without notice.

The advertised loan is an FHA 30-year Fixed Rate Loan with a 30-year fully amortizing term. The interest rate is 5.250% for 360 months. The disclosed APR is based on the payment of 3.000 discount points. For a $726,200 loan, there is a 6.437% APR with a monthly principal and interest payment of $4,010 for 360 months. Interest rate quoted assumes a purchase at 80% loan-to-value (LTV), a minimum FICO score of 740 on a primary residence. The actual interest rate, APR and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Lender. Not available in all states. Payments shown do not include taxes, hazard insurance, or mortgage insurance; actual payment obligations will be greater. Not all applicants will qualify. Rates and terms are effective 9:00AM PT on 9/18/2024 and are subject to change without notice.

This is a VA program. Current guidelines for VA Financing can be found at https://www.benefits.va.gov/homeloans/index.asp . The advertised loan is a VA 30-year Fixed Rate Loan with a 30-year fully amortizing term. The interest rate is 5.250% for 360 months. The disclosed APR is based on the payment of 3.000 discount points. For a $726,200 loan, there is a 5.882% APR with a monthly principal and interest payment of $4,010 for 360 months. Interest rate quoted assumes a purchase with 45 day lock pricing at 100% loan-to-value (LTV), a minimum FICO score of 740 on a primary residence. The actual interest rate, APR and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Lender. Not available in all states. Payments shown do not include taxes or insurance, actual payment obligations will be greater. Not all applicants will qualify. Rates and terms are effective 9:00AM PT on 9/18/2024 and are subject to change without notice.

Refinance: By refinancing your existing loan, your total finance charges may be higher over the life of the loan.