FAQ: What is a Right-to-Cure Notice? When Am I Suppose to Receive This Letter?

Question:  What is a right-to-cure notice?  When am I suppose to receive this letter?

Answer:  A right-to-cure notice is a letter that your servicer must send you prior to foreclosure that gives you an opportunity to reinstate your mortgage loan. The notice will state all of the past, undue mortgage loan payments and tell you the amount needed to make the loan current.  The law on these notices also requires the servicer to include specific disclosures, including the name and contact information of your mortgagee.

An error in one of these notices may be grounds for challenging foreclosure.  However, after a foreclosure has occurred, a homeowner can only use this defense if they can prove “fundamental unfairness.”  There aren’t too many court cases on what this means, but the leading case in this area of law suggests that it has to be a major mistake.  Speak to a foreclosure defense attorney to learn if one of these defenses might help you save your home.