Below are some of the most common questions we have received in our experiences with people and their situation...


What is a Notice of Default (NOD)?

Your mortgage lender begins sending payment demands when you fall behind on your payments. Failing to pay your past-due payments results in the lender filing a Notice of Default with the county. The Notice of Default is your official notification that the lender intends to foreclose on the property if you do not pay your past-due balance. The lender files the Notice of Default with the county and sends a copy by certified mail to your residence.


What steps does the Lender take after the NOD is filed?

After the lender files the Notice of Default, you get 90 days to bring your past-due bill current. After the 90 days pass, the lender files a Notice of Sale with the county. The Notice of Sale displays the location, date and time of the sale. It lists the trustee's name and contact information. The Notice of Sale is posted on the property, published in the newspaper, filed with the county and sent by certified mail to your residence.


How can we stop our home foreclosure?

Even with a Notice of Default filed, you get several opportunities to save your property. You have 90 days after the Notice of Default to bring the account current. Once the lender files the Notice of Sale, you have until five days prior to the auction to pay the bill to save your property. Once that five days lapses, your house goes up for auction. If you do not have the funds to bring the account current Home Help has many options, one being we purchase your property and help you avoid foreclosure and the effects it will have on your credit long term!


How will a NOD or foreclosure affect my credit?

Ignoring a Notice of Default is a surefire way to get your home foreclosed. Fair Isaac Corporation, which created the FICO score model, considers late mortgage payments to be one of the biggest factors that bring your credit score down. Debtkid.com estimates that a foreclosure will bring your credit down by approximately 280 points. A foreclosure will remain on your credit report for up to 10 years, and you will have a difficult time getting a new home loan for at least three to five years or more.
A foreclosure can drop credit scores from 50-250 points (this includes points already lost due to delinquent payments). The difference in point loss depends on how many points someone has to lose in the payment history factor of his or her credit report. Thus if someone has a 750 credit score and they opt to foreclose, their score could drop up to 250 points. However, if someone has a 500 credit score, they may only lose 50 points for the same derogatory.

If you take steps now while you’re in the Notice of Default process you can reduce the adverse effects on your credit that a foreclosure would have.