Foreclosure notice of default in Florida- what is it?
What is it?
If you’ve gotten a foreclosure notice of default and want to know what the heck is going on, keep reading.
Basically, a foreclosure notice of default is a document that has to be filed by a lender to start the process of foreclosure. The Dodd- Frank bill restricts “dual tracking,” the practice of a mortgage lender beginning a foreclosure action at the same time it offers a borrower a loan modification.
During the financial crisis, the Obama administration created a bill, called HAMP to help the ten million people at risk of foreclosure. In the end, HAMP helped only about one million homeowners in five years.
The foreclosure notice of default must be sent to anyone who has an interest in the property (any other loans, lenders, or even contractors who are owed money for work done to a property will get a copy). The foreclosure notice of default must also be published in a newspaper and physically posted in a prominent place on the property itself. Although this can be really embarrassing to someone going through foreclosure, it’s actually a very important protection for consumers.
Back before US law required a notice of default, people were sometimes foreclosed on without any warning.
In fact, it’s happened even in the past few years – at least one bank has accidentally foreclosed on the wrong property and kicked people out of their house without due process or warning. It’s even happened around Orlando.
The notice of default is a very important step in the foreclosure process that gives people with an interest in the property to step forward and claim their rights – before it’s too late.
If you’ve received a notice of default, don’t wait. Time is definitely of the essence, and you should take action.
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