What is a notice of default letter before a foreclosure in Alabama?
What is a notice of default letter before a foreclosure in Alabama?
So you have a mortgage, you’re going through a rough patch, and you’re starting to miss payments on your mortgage.
Now you’re getting a letter that says “notice of default,” and you’re wondering what in the world this could be.
Typically, this is a letter that’s sent around 90 days/4 months.
The letter itself basically says, “You’re late, and you’re in default because you broke the contract. If you don’t fix it in 30 days, we’re going to accelerate the loan to where it’s all due at once.”
That means that, instead of having 30 years to pay off the mortgage, you have to pay the full amount left on your mortgage right then and foreclose on you.
That’s a default notice in a nutshell.
You may be wondering, “Well, what is a typical reason for a default?”
The classic example is that we’re not making our payments.
So they say, “You owe $1,500/month, you’re 3 months behind, so now you owe $45,00o. You need to pay that off within 30 days to cure (or fix) that debt. If you don’t, then you will get a letter called a notice of acceleration.”
We’ll talk about notice of acceleration in another video, but that basically means you’re close to foreclosure.
If you receive a notice of default, take it very seriously.
You need to take immediate action to repair the damage, whether it’s paying off what you owe or doing some sort of loss mitigation.
Or, if you feel that you have a valid defense against the foreclosure, you need to take immediate action, which may mean suing your mortgage company.
And most importantly you need to look at the notice of default and see if it fits with your mortgage. Normally the best route is to sue if the mortgage company will not stop the foreclosure on its own.
We hope this is helpful to you.
If you have any questions, feel free to get in touch with us.
You can reach us by phone at 1-205-879-2447, or you can fill out a contact form and we will get in touch with you quickly.
Thanks for reading, and have a great day!
PS — If you are facing a foreclosure, we suggest you fill out this form and we’ll not only get in touch with you but we will also send you a helpful worksheet to use with a video to help you understand your options. We want you to know everything you can do to stop a foreclosure without having to file bankruptcy.