Default Notice From The Bank
All Letters Are Not The Same!
As you already know or will find out shortly if you’re involved in the foreclosure process, you’ll receive multiple letters regarding the loan default and attempts by the lender to collect past due amounts. However the formal “default notice” is one of the most important documents you’ll receive and may start the clock ticking on the foreclosure lawsuit in judicial sale states or the foreclosure sale in non-judicial sale states.
The exact language required in your formal “default notice” is contained in either your mortgage, the promissory note or both which is why its important to keep a copy of the final default notice and any other correspondence from the lender to make sure they complied with these requirements. Difference Between Promissory Note and Mortgage
As discussed in our Foreclosure Lawsuit section, the lender’s failure to follow the exact procedures and use the specific language required by your loan documents can be a strong defense in a foreclosure lawsuit and may help to get the lawsuit dismissed altogether. In extreme circumstances, the lender’s mistakes may result in rescission of the contract and loan documents meaning the property is owned free and clear of that particular mortgage. Read About Foreclosure Defenses That May Save Your Home