Notice of Default
A countywide epidemic
In January 2007, there were 3,193 Notices of Default mailed to Los Angeles County homeowners. That number is almost twice as many as those sent in January 2006 (1,680) and over 2½ times the recent historic low (1,208) from April 2005.
DON’T DELAY: You missed a payment or two and the bank has filed a Notice of Default. This officially starts the foreclosure process, and you need to act quickly to avoid the forced sale of your home.
THE CLOCK IS TICKING: You now have three months from the date the Notice of Default is recorded to pay back payments and fees to the bank. If you pay before the time expires, your home won’t be sold.
TALK TO YOUR LENDER: If you can’t make up the payments, you still have options. Talk to your lender. Ask them to work with you on a plan to save the loan and your home. The bank doesn’t want to sell your home, but you have to talk to them to work something out.
There are no magic solutions to your problem.
If something sounds too good to be true, it probably is.
BEWARE OF SCAMS: Many unscrupulous people target homeowners in default. They know you are desperate to save your home and look to take advantage. They may ask you to transfer your property to them or a third party, offering to rent it back until you can make up the payments. They may offer refinancing at extremely high costs and take whatever equity you have. Either way, you lose your home.
BEFORE SIGNING ANYTHING: Talk to an attorney or a HUD counselor at (800) 569-4287. Do not sign over your property until talking to a counselor. Be aware that many available programs to assist homeowners in default are only for owner-occupied homes. If you sign over your property or move out, you may not qualify for some programs.
WE CAN HELP: Our counselors are available to answer your questions. To contact a DCA real estate representative, call (800) 973-3370.
SALE TIME: If you did not pay the bank the amount of money due under the Notice of Default on time, the lender will next record a Notice of Sale.