Notice of Default already?

[MH_Sucker]

I received a notice from the post office that we have 2 registered letters waiting for us at the office. We have only missed November and December payments. Could this be the Notice of Default already? If so, how long is it before they set the sale date? I looked at the timeline on the site but it indicates that most lenders don't start the process until you are 3 months late. Seems that my lender may be on the ball! Any input would be appreciated. I don't want to jump the gun finding a place to live but I also don't want to be scrambling!

[Tom H]

Could be, but then maybe its Christmas Gift. I'd make a trip to the post office.

[The Professor]

I'd solve the mystery by going to the post office. My guess is this is a preliminary step towards filing a notice of default that resulted in a recent change to California law that requires the lender to make a good faith attempt to seek a joint solution at least 30 days before filing the Notice of Default. Play the game and seek that which will likely not work for you. That is a negotiated modification. String the lender along and extend the time before they file the notice of default.

Daniel

[Lisa in MN]

Daniel,

I think you are feeling particularly sassy lately I notice it in your responses and I LOVE reading them
Be well,

Lisa

[MH_Sucker]

Thanks I plan on solving the mysterby but find it hard to do since I work full time about an hour away from the post office. I was kind of looking for some advice on when to start looking for a new place to live, not just some smart-a#$ remarks.

[Tom H]

Well, I don't particularly think smart (blank) remarks quite fit the bill. While a pain in the rear, occassionally registered letters come but equating them prematurely as something horrible seems a little like paranoid behavior in my opinion. If the Professor is right and its a request for a mutual agreement, respond like in kind with a registered letter of your own asking for everything but the kitchen sink. Perhaps it'll work in your favor, it is that time of year.

Generally, the time for a NOD is about 90 days as I understand it, but I'd look into the foreclosure laws in your particular state (available on this site to get an idea). It's never too early to start looking around at your options if you're considering foreclosure as a likely possibility.

Have a happy holiday.

[MH_Sucker]

Sorry for the reply. This whole process just sucks. I am frustrated, mad, sad, etc. I probably did post prematurely but I am just looking for a little guidance and/or commiseration.

[Tom H]

No problem MH.

I know the feeling all too well, but don't let this ruin your (or your family's) holiday. Do the best you can do with what you have, find thanks and peace within yourself and your loved ones, make your entire community's holiday just a little brighter this Christmas. The whole economy (globally) is in the crapper, you aren't on this ship alone, take pride in each day and have a good holiday. YOU DESERVE IT!

[DeadBeat]

I hate to tell you but I got a NOD after 38 days late from CitiMortgage.

It may be because I already had a deferment for a couple of months in the past or just because I told them I wasn't going to make another payment unless they lowered my 10+% interest rate.

I think it is the NOD - the wording is the default needs to be cured by paying all past due amounts and late charges with certified funds by a particular date or the loan may be accelerated. It wasn't sent certified mail though.

[MH_Sucker]

The letter states that the loan is in default and we have been given 30 days to pay back all the past due amounts, plus all charges, etc. So my question is based on reading the timeline information on the site, it sounds like we have 30 days before foreclosure proceedings begin and once the foreclosure process begins we have 60 days before the sale date is set. Does that sound about right? Thanks for the responses and sorry again for the negativity of the previous post. Bad day

[DeadBeat]

It sounds like from the letter that you have 30 days before foreclosure begins. How long you have after that depends on your state. I would look up the laws and see what they have to do legally, not count on average timelines. Just my opinion but I just don't trust any mortgage companies right now.

I would advise putting in an application for your new place to live now - I found that some companies renting houses will hold an approval for up to a year. Just ask before spending the money to apply. I got my approval before my credit report showed I was even late. Good thing since at 45 days late, they're reporting as 2 months late already.

But it depends on if you want to try to fight the foreclosure and stay as long as possible. There's lots of tricks that can stretch it out. I've just decided it's not worth the fight to keep a house worth much less than I owe.

But I'm just someone in the same situation and have no real knowledge so maybe one of the senior members can give better advice.

[Tom H]

Well,

It appears your suspicions were correct, I'm very sorry to hear that. Please still try and do your best to enjoy the holiday, take time for yourself and the family. You can wrestle with the mortgage folks post-Christmas.

[cactus77727]

Hi MH!

Just wanted to give a shout out and say hang in there. I'm waiting until 1/2/2009 (Happy New Year) which is the first day they can file for foreclosure for my situation. I won't know the sale date until they file either. So I'm hanging in the unknown too. It's frustrating but plan as best you can.

Keep us all posted.

[knabrusc]

cactus77727~

We were in AZ and we just received a Notice of Trustee Sale scheduled for March 6,2009 and it is on record. That is all we have received plus acouple letters saying we denied a short sale or modification. We haven't received a NOD though...aren't we supposed to receive that first? Or am I confusing things and just want this to be over with?? If anyone else knows please advise Oh yeah...we missed Sep, Oct, Nov and Dec.
Thanks!

[cactus77727]

Hey knabrusc!
I know we discussed this in aother thread but just so this thread isn't left open ended. Sorry I didn't see this one until today.

The notice of default and time to cure, was in my loan documents under "Acceleration and Remedies". I don't think an NOD is required by Arizona law.

In AZ Notice of Trustee Sale (NTS) gets recorded, then they must notify you by sending you certified mail within 5 days of NTS.
The sale date must be more than 90 days after the recording date of the NTS.

Even if they didn't follow the loan doc time lines exactly, I wouldn't waste time and money on an attorney to fight it either. I will have at least 6 months rent free by the time I'm booted out. And that's enough for me. Plus, I don't want to be here once the weather starts to get hot. The way things are going in my house, the air conditioner will probably blow up. Ha ha.

[cactus77727]

Hi MH_Sucker --- Any updates on your situation? Hope you are doing OK.

[MH_Sucker]

No update to report yet. I took everyone's advice and took the holidays off from worrying about all this!

If my bank sticks to what the letter said, we expect to receive our NOD sometime this coming week.

We have started to look at rentals just to see what is out there. I think in California we for sure have 90 days from the NOD before we start receiving eviction notices. In the meantime our house is on the market as a short sale but the realtor has told me she has little to no hope that it will even be looked at since there are a ton of REOs in our area that are more appealing.

Thanks to all for the comments and advice and good luck to everyone out there dealing with this. I can't wait to put this all behind us and just move on with life.