Foreclosures in Massachusetts generally begin through a notice of default. A homeowner who is behind on their mortgage loan often receives many letters informing them of their owed balance. A formal notice of default, however, is required under state law and the terms of most mortgage agreements.
What’s In a Notice of Default?
A notice of default typically contains a number of required disclosures:
- Information about the holder of the mortgage, terms of the loan, and the outstanding balance of the owed debt
- The amount the borrower must pay to cure the loan default
- Disclosure of the homeowner’s rights in a foreclosure proceeding
A notice of default must generally be sent by both certified and regular mail. A homeowner who receives a notice of default will not immediately face a foreclosure sale; there are several other requirements that must occur before a foreclosure can begin. One of these notices, however, is a sign that the mortgage lender will start foreclosure soon.
What To Do About a Notice of Default
The most important thing for a homeowner receiving a notice of default is to not ignore it. A foreclosure is coming, and a delay in addressing this problem can make a resolution harder to come by. Speak to a foreclosure defense attorney if you receive one of these notices to learn what can be done to avoid losing your home.
A homeowner receiving a notice of default should also review these letters closely. Mistakes can (and do) happen and it is a good idea to make sure everything in one of these notices is correct.
Failure to comply with the requirements for a notice of default can be grounds for challenging a foreclosure, both pre-foreclosure and post-foreclosure. An experienced attorney can discuss whether such a legal challenge is an option for your case.
A homeowner receiving a notice of default can certainly solve the problem of foreclosure by paying off the outstanding amount of the loan (and should do so if they are able). Homeowners, however, should keep in mind that simply paying off the outstanding amount of the loan will not solve the long term problem for the borrower if they are unable to afford the monthly loan payments. In such a case, the homeowner should apply for a loan modification and attempt to get a more affordable loan payment.
If you find yourself in need of assistance with one of these matters, contact me for a consultation.