First Stages of the Foreclosure Process | NOD | NOTS | LIS
Dec 04, 2009 by Tim Cook
Having an education in regards to the foreclosure process is like having an education in any other subject. Which is why understanding ‘types’ of foreclosure notices and ‘foreclosure process’, the more you know the better. To start things off, mortgage delinquency or the “non-payment” of loan is determined by each lender. Most lenders will consider a mortgage delinquent when the borrower has become 30 days past due on a single payment. Immediately upon delinquency of a payment the lender will notify the borrower by means of: letters, payment statements, phone calls or other means of communication the borrower has provided the lender with. You should never be intimidated by your lender or “afraid” of your lender. The fact is that money is owed to them, and they would like to know when they can expect a payment. Many times, once a homeowner has missed a payment, they purposely avoid the lenders letters and phone calls, which is the LAST thing you or any borrower should ever do. And nowadays with caller ID, lenders are having a more difficult time contacting homeowners who have missed payments. If you have the intention to pay a missed payment(s) owed to your lender, but avoid your lenders methods of contact you can run the chance of your lender sending you a Notice of Default (NOD) or Notice of Trustee Sale (NOTS). You can avoid these types of notices by simply communicating with your mortgage lender. NOD, NOTS & LIS PENDEN The Notice of Default (NOD) and Notice of Trustee Sale (NOTS) are the beginning stage of a foreclosure sale process. A Lis Penden (LIS) is the legal notification to the borrower that law suit is pending for loan payment delinquency. The NOD, NOTS & LIS notices are the lenders way of telling a homeowner that they will be forced to sell the property at a foreclosure sale unless the homeowner reinstates the loan or pays it off. The start and timelines of the foreclosure process will differ in each state based on the judicial, non-judicial, strict and possession foreclosure types. The NOD, NOTS & LIS communications should not be taken lightly. They are very serious matters and should be handled accordingly. If you have yet to receive a NOD, NOTS or LIS, knowingly that you have not been paying your mortgage do not assume your lender forgot. Some lenders do get backed up with paperwork. Your lender is not going to ‘forget’ about any missed payments and will send out the NOD, NOTS or LIS as soon as they can.
The next stage/process of the foreclosure is the Mortgage Acceleration Clause (details coming soon)
Tim Cook
www.IBuyNorthTexasHomes.com
Be sure to subscribe to our BLOG by entering your email address in the "Subscribe" box over to your right click on the "Subscribe Me" button.
Having an education in regards to the foreclosure process is like having an education in any other subject. Which is why understanding ‘types’ of foreclosure notices and ‘foreclosure process’, the more you know the better. To start things off, mortgage delinquency or the “non-payment” of loan is determined by each lender. Most lenders will consider a mortgage delinquent when the borrower has become 30 days past due on a single payment. Immediately upon delinquency of a payment the lender will notify the borrower by means of: letters, payment statements, phone calls or other means of communication the borrower has provided the lender with. You should never be intimidated by your lender or “afraid” of your lender. The fact is that money is owed to them, and they would like to know when they can expect a payment. Many times, once a homeowner has missed a payment, they purposely avoid the lenders letters and phone calls, which is the LAST thing you or any borrower should ever do. And nowadays with caller ID, lenders are having a more difficult time contacting homeowners who have missed payments. If you have the intention to pay a missed payment(s) owed to your lender, but avoid your lenders methods of contact you can run the chance of your lender sending you a Notice of Default (NOD) or Notice of Trustee Sale (NOTS). You can avoid these types of notices by simply communicating with your mortgage lender. NOD, NOTS & LIS PENDEN The Notice of Default (NOD) and Notice of Trustee Sale (NOTS) are the beginning stage of a foreclosure sale process. A Lis Penden (LIS) is the legal notification to the borrower that law suit is pending for loan payment delinquency. The NOD, NOTS & LIS notices are the lenders way of telling a homeowner that they will be forced to sell the property at a foreclosure sale unless the homeowner reinstates the loan or pays it off. The start and timelines of the foreclosure process will differ in each state based on the judicial, non-judicial, strict and possession foreclosure types. The NOD, NOTS & LIS communications should not be taken lightly. They are very serious matters and should be handled accordingly. If you have yet to receive a NOD, NOTS or LIS, knowingly that you have not been paying your mortgage do not assume your lender forgot. Some lenders do get backed up with paperwork. Your lender is not going to ‘forget’ about any missed payments and will send out the NOD, NOTS or LIS as soon as they can.
The next stage/process of the foreclosure is the Mortgage Acceleration Clause (details coming soon)
Tim Cook
www.IBuyNorthTexasHomes.com
Be sure to subscribe to our BLOG by entering your email address in the "Subscribe" box over to your right click on the "Subscribe Me" button.
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