What do I do if I receive a notice of default?
A San Francisco bankruptcy lawyer helps answer: What do I do if I receive a notice of default?
What is a notice of default?
A notice of default is a letter from the bank or other mortgage lender informing you that the monthly mortgage payments on your home have not been made and that the loan is now in default.
What does the notice of default mean?
The notice of default means that you have missed one or more prescheduled payments. Typically the notice states when the payments were due and what is needed in order to cure the default. Some lenders will require that the entire balance be paid while others will just require the amount in arrears. Often administrative fees are also included
Does a notice of default mean my home will be foreclosed on? That depends. The notice does not necessarily mean that a foreclosure is imminent. The borrower can cure the default by paying the amount requested by the lender. If the borrower is unable to pay the cure amount, filing bankruptcy will automatically stay any further action the lender can take against the borrower. Filing bankruptcy will then allow the borrower to catch up on past payments.
How can bankruptcy help someone who receives a notice of default?
As mentioned above, filing bankruptcy will automatically stop any proceeding or other action the lender is taking or plans to take against the borrower. This allows the borrower a chance to develop a repayment plan to catch up on the missed payments. While the borrower will still be responsible for the regular monthly mortgage amount, the past due amount is not due all at once and repayments can be stretched over a period of three to five years.
If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!
