What Is a Request for Notice of Default?

Save

A borrower receives a "notice of default" when he falls behind on his mortgage payment, according to U.S. Legal. Parties with an interest in the property, such as a cosigner, have the right to request a copy of the notice of default.

Function

For a party to receive a request for notice of default, he must give his address to the originator of the loan, according to the TD Service Company Foreclosure Dictionary.

Benefits

A request for notice of default is important because it allows the interested parties, such as other lenders and the home owner's association, forewarning that their stake in the loan is at risk.

Effects

When the interested parties receive a notice of default, it means the borrower must immediately remit payment and other costs, such as filing fees, or the prime lender may take legal action, usually a foreclosure.

Related Searches

References

Promoted By Zergnet

Comments

You May Also Like

Related Searches

Check It Out

4 Credit Myths That Are Absolutely False

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!