Notice of Default?

[Martha13]

I think we are going to let the house go, and I'm now wondering about our timeline. I've read some different things, and asked our atty about it yesterday, and he did explain the initial 90 days following the Notice of Default. I am trying to figure out if we actually have that! The first payment we missed was May. About 3 weeks ago we received something with the words "Default Notice" at the top, and it basically laid out how much we owe, where we can send the payments, etc, but there were no extra fees (other than late fees). It was for 2 months. There was no legal lingo, threats, etc. So, was this THE official NOD, or was that something else? I'm so confused.

[Minnymouth]

This was a notice from your mortgage company that your mortgage payments were behind two months and "indefault". They explained what you owe and what you need to pay to bring them current. It is their way of telling you to please catch them up.

The next notice will be for a "foreclosure notice", stating that they will be foreclosing on the property (usually 90 days late on payments).

Since you are going to let the home go back, you don't need to be too concerned about the "default notice". Its just formal paperwork.

Now if you were planning to "keep you home", then some serious clean up needs to be done quickly. In order to keep your home you must be current on payments.

The mortgage company cannot foreclose on the home till the "automatic stay" is lifted unless they petition the court. This is usually 60 days from the 341 meeting.

So if you have filed already, waiting on 341 meeting, you still have approximately 3 months or longer to stay in the home - rent free......

Your attorney should have told you most of this already.....

Keep us posted

[Martha13]

Thanks, Minny! Our attorney did give us the basic run-down on the timing yesterday at our meeting to sign the petition, but my head was swirling and by the time I got home I was trying to keep it all straight! We were going to pull out the notice and check the date to get an idea of when the 90 clock started ticking, and that's when we realized it technically didn't say NOTICE OF DEFAULT in that exact way...plus, it had no date on it and we had tossed the original envelope.

Your info on the timeframe following the 341 is very helpful, thanks so much. That should give us plenty of time to find another home to rent. Half of me wants that to happen asap and get the hell out of here, the other half thinks, well, it sure would be nice to save up the $$ for 2-3 mos. I am also very freaked out about the whole neighborhood embarrassment of whatever they may place on our door eventually, but what can you do? *sigh*

p.s. do you have beagles? There was a moment of dare I say, laughter, at our meeting yesterday when we saw our sweet, 11 yr old lumpy beagle in our assets/exemptions columns

[No Gravy]

Thanks, Minny! Our attorney did give us the basic run-down on the timing yesterday at our meeting to sign the petition, but my head was swirling and by the time I got home I was trying to keep it all straight! We were going to pull out the notice and check the date to get an idea of when the 90 clock started ticking, and that's when we realized it technically didn't say NOTICE OF DEFAULT in that exact way...plus, it had no date on it and we had tossed the original envelope.

Your info on the timeframe following the 341 is very helpful, thanks so much. That should give us plenty of time to find another home to rent. Half of me wants that to happen asap and get the hell out of here, the other half thinks, well, it sure would be nice to save up the $$ for 2-3 mos. I am also very freaked out about the whole neighborhood embarrassment of whatever they may place on our door eventually, but what can you do? *sigh*

p.s. do you have beagles? There was a moment of dare I say, laughter, at our meeting yesterday when we saw our sweet, 11 yr old lumpy beagle in our assets/exemptions columns

I was also confused if I had been served with an official NOD When I met with a bankruptcy attorney this week I took in the 2 "notices" the mortgage company has sent me. I last paid my mortgage in March (so at this writing I owe 4 months).

The attorney looked at the "notices", and said neither is an official Notice of Default, that they were just using the word "Default" in order to scare me (and I'll admit it...it worked!).

He also said, which you already know, that I'll have 90 days after receiving the NOD, then likely another 3 months before they get around to foreclosing/selling the house.

[Martha13]

Hey, thanks No Gravy! I kind of thought they'd be more "serious" (with dates and threats and such) if they were the REAL NOD... I don't know when we'll get that. I assume they've been notified of the bk filing, since they are no longer calling at 8:19 every morning. Come to think of it, no one's been calling--it's been nice and quiet around here. Only the sound of me packing.

I wish we could have stayed the course in the house for "free" for awhile, but we wanted to be settled before school starts up again next month, and we were a little nervous about renting with the foreclosure AND bk. We are signing a contract on a rental home this weekend. Now of course I just want this whole thing sped up to its conclusion. Still debating on whether to go thru the motions of selling or not (and I know it would only be motions---ain't no one buying around here these days). I have to admit, the main reason I'd want to do that is for "looks"--easier to explain we are trying to sell our house than to just well, admit the obvious..Right now one of my biggest concerns is when they slap that embarrassing orange note on the house: ANNOUNCEMENT--LOSERS!!!! We haven't told our neighbors a thing..I'm dreading next week when we have a Uhaul in the driveway.