 Sam
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Joined: 21 May 2005
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 Posted: Sun Apr 11, 2004 5:23 am Post subject: Notice of Default |
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Notice of Default is a formal notice stating that a borrower has late payments or missed payments on a mortgage. It serves as evidence that the borrower has violated the terms and agreement of the promissory note.
The notice of default is issued when the lender tells the court that a default on a loan has occurred. If the money owed, late charges assessed and the cost of preparing legal papers for the default is not paid within a certain time, then the lender may conduct a foreclosure. Other people having funds secured by the same property are entitled to receive copies of the notice of default.
Notice of default should be sent promptly to accounts that have fallen behind in their payments on a note. It acts as a legal basis for a suit for the breach of the promissory note. |
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