What Is a NOD Document in the Foreclosure Process?

During the foreclosure process, a homeowner will receive many documents, one of which is a Notice of Default (NOD). A homeowner will receive this notice when they are past due on the mortgage and have not been able to get their account current by paying past due amounts.

Description

A Notice of Default (NOD) is a document sent to a homeowner when they are more than 30 days late with their mortgage payment. However, most mortgage lenders will not start the foreclosure process for 90 days.

Foreclosure

A foreclosure occurs when a homeowner is delinquent with the payments on their mortgage.

Prevention

If a homeowner is able to pay the past due amount during the pre-foreclosure phase, this may prevent a Notice of Default from being sent to them.

Tip

A homeowner should speak to their mortgage lender immediately if they know they cannot pay their mortgage. To avoid foreclosure, a homeowner can try to sell the home at the appraised value or through a short sale, if the home if it is worth less than the amount due on the mortgage.

Warning

Late payments and foreclosure both have a negative effect on an individual's credit score.

References

• Department of Consumer Affairs: Notice of Default