Walk It Through: The Notice Of Default
Missed house payments, a recorded notice, a month to catch up, and a trustee's sale.
After a job loss, a homeowner misses three payments on a house financed with a trust deed.
Two things a person in this spot might do. Picking one shows what the law says about it.
One house and one farm. Loan modification, bankruptcy, a deficiency after the sale, and renters in a foreclosed house are not worked through here.
A practice walkthrough, not a prediction of how any real one will go. Legal information, not legal advice.
Words this turns on
Terms with a legal meaning that is narrower than the everyday one. Each links to the definition and the authority behind it.
- Notice of defaultThe notice a trustee records with the register of deeds, stating the breach and the election to sell, before a trust deed's power of sale can be used. The trustor has one month after it to cure.
- Notice of right to cureThe written notice a mortgagee sends before foreclosing a mortgage on land used in farming, giving the mortgagor two months to pay what is due.
- Trust deedA security instrument with a trustee who holds a power of sale. Cured within the time allowed, it is reinstated as if no acceleration had occurred.