THE PROCESS

If you have a Notice of Default filed by one of your lenders. In this section, we will explain how the process works.

After you are in arrears for 30 days or more, the lender will usually contact you via mail or telephone to gently remind you that you are late on your payment. In addition, they will also inform you that you will need to make 2 payments.

Next, the lender will send you letters informing you that if you do not pay the arrears and bring their loan current, they intend to file a NOTICE OF DEFAULT (NOD) against you. In the past, you could stay in your home for 6-9 months before this occured if you had a government loan, Fannie Mae or Freddie Mac loan. This has changed. After the last real estate recession, all lenders were instructed to begin proceedings after 90 days. Of course they could take longer or shorter. They are not obligated to wait beyond the 30 day late period. If they file an NOD< you have 120 days to cure the problem or lose the home.

The next step is the NOD. This deed is recorded in the County Recorders office and published in newspapers. The lender has 90 days before the filing of the NOTICE OF TRUSTEE SALE (NTS). During this NOD process, the lender adds the filing, attorney, and trustee fees to your loan amount. This increases the amount due. In addition, interest is due everyday that you have not paid the arrears and is added to the loan amount. Therefore, time is your enemy!

After the NOD period is over (90 days), the lender will file a NOTICE OF TRUSTEE SALE (NTS). This deed is for approximately 30 days. Even though the lender is supposed to wait 30 days, I have seen much shorter times. With no one on your side, you could be rail roaded during this time. The Trustee Sale is conducted on the "Court House steps". At this time you have lost your home. You will be moving within a few short days by force if necessary as the Marshall or Sheriff will force you out!