Notice of default
A recorded notice starting the foreclosure clock. Filed after the borrower has missed several payments. The borrower usually still has time to catch up and stop the process.
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Part 1 of 4
Why a seller cares
The notice of default is the first recorded step, and it is public. Investors pull those records, which is why the letters offering to buy your house start arriving the week after.
Part 2 of 4
A simple example
Three months behind, the lender records a notice of default. Within a week you have six letters from investors and two from foreclosure-rescue services.
| What the notice starts | What the seller can still do |
|---|---|
| The reinstatement window | Pay the missed amount and fees to stop the process |
| The clock to the sale notice | List and sell before the auction |
| The mail from investors | Weigh their offers against a listing, with the time in mind |
The notice of default is public and it is a beginning. The end is months away.
Part 3 of 4
What people get wrong
That the notice means the home is gone. It means the lender has started; the borrower usually still holds every option for a while.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
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