A foreclosure notice is simply a formal notice bearing a warning to homeowners that if payments are not made, it may lead to a foreclosure of their properties involved. A foreclosure notice is also called a Notice of Default. It declares that a default has occurred and may lead to certain legal actions. These documents are filed or presented during the process of a foreclosure.
When mortgage companies or creditors send you letters reminding you of missed payments which may lead to your property’s foreclosure, these are just plain communications to get you to pay for your mortgage and not foreclosure notices. These communications via letter come when you fail or miss to pay a number of mortgage payments.
You may also receive these communications via phone calls. However, if the mortgage company sent you letters informing you of your missed payments and you did not institute action to pay for them, there is no other option left for the mortgage company but to issue you an official foreclosure notice.
When do you know that you have received a foreclosure notice or a Notice of Default? What does it look like? To begin with, an official Notice of Default which comes as a formal document states that if the payment (including a legal fee) is not paid during the time given, the mortgage company or the creditor may initiate the foreclosure of the debtor’s property. This notice may also be forwarded to third parties affected by the foreclosure.
Included in the official foreclosure notice is a list of payments missed and the total amount you have to pay to stop the foreclosure of your property involved. This total amount is called reinstatement. Failure to pay for the reinstatement means that your property will be included in your local newspaper’s list of properties foreclosed.
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