Notice of Default in California (What Homeowners Need to Know)
What Is a Notice of Default?
If you have fallen behind on mortgage payments, you may eventually receive a document called a Notice of Default, often referred to as an NOD.
In California, the Notice of Default is one of the first official steps in the foreclosure process. It is recorded with the county and notifies the homeowner that the mortgage is seriously delinquent.
Receiving a Notice of Default can be stressful, but it is important to understand that it does not mean you will immediately lose your home.
When Is a Notice of Default Filed?
Lenders typically file a Notice of Default after a homeowner has missed several mortgage payments.
In many cases, the timeline looks like this:
- Mortgage payments are missed
- The lender sends warning notices
- After about 90 days of delinquency, a Notice of Default may be recorded
Once the Notice of Default is filed, the foreclosure process officially begins.
How Long Do You Have After a Notice of Default?
After the Notice of Default is recorded, homeowners in California typically have at least 90 days before the lender can move forward with the next step of foreclosure.
During this time, homeowners may have several options to resolve the situation.
Some possible options include:
- catching up on missed mortgage payments
- negotiating with the lender
- selling the property
- working out alternative arrangements
Taking action early can often provide more flexibility.
What Happens After the Notice of Default?
If the mortgage is not brought current during the 90-day period, the lender may issue a Notice of Trustee Sale.
This notice schedules the foreclosure auction of the property.
The Notice of Trustee Sale must be issued at least 21 days before the foreclosure sale takes place.
Can You Sell Your House After a Notice of Default?
Yes, many homeowners are still able to sell their house after a Notice of Default has been issued.
Selling the property before the foreclosure auction may allow the homeowner to pay off the mortgage balance and avoid foreclosure.
This option can sometimes help protect credit and provide a path to move forward financially.
Selling a House Before Foreclosure
Some homeowners choose to sell the property quickly before the foreclosure process continues.
In certain situations, selling the home as-is may allow homeowners to avoid the cost and time involved in repairs or traditional listings.
Working with buyers who purchase houses in different situations can sometimes simplify the process.
Learn More About Your Options
If you’ve received a Notice of Default and are unsure what to do next, it may help to explore all available options before the foreclosure process moves forward.
At Blue & Gold Homes, we work with homeowners throughout California who are dealing with foreclosure, inherited property, or other difficult situations.
We may be able to provide a fair cash offer and help simplify the process.
Fill out the form below to learn more about your options.
If your exploring other ways to sell your house in California check out these other resources: