What is a Notice of Default?
ANSWER: A Notice of default is a public notice filed with a court which states that a mortgage borrower is in default on a loan. This is one of the initial steps toward foreclosure. A notice of default and subsequent foreclosure actions will be documented and disclosed to all credit bureaus. Hence, all foreclosure proceedings and actions can have severe repercussions on a borrower’s credit score. This will also negatively impact the borrower’s ability to obtain a mortgage or any type of debt in the future.
What states allow Non-Judicial Foreclosures?
ANSWER: The following states allow non-judicial foreclosures: Alabama, Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Georgia, Idaho, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Carolina, Oregon, Rhode Island, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, and Wyoming.
What is a Foreclosure?
ANSWER: A foreclosure is the legal practice where your mortgage company secures ownership of your home. Basically, they repossess the property. A foreclosure occurs when the homeowner has failed to make payments and has defaulted or violated the terms of their mortgage loan agreement. A foreclosure can typically be avoided, even if you already received the foreclosure notice. A foreclosure can wreak havoc on your credit score. You must talk with your lender and take action as soon as possible.