If you’ve gotten a foreclosure notice of default and want to know what the heck is going on, keep reading.
Basically, a foreclosure notice of default is a document that has to be filed by a lender to start the process of foreclosure.
The foreclosure notice of default must be sent to anyone who has an interest in the property (any other loans, lenders, or even contractors who are owed money for work done to a property will get a copy).
The foreclosure notice of default must also be published in a newspaper and physically posted in a prominent place on the property itself.
Although this can be really embarrassing to someone going through foreclosure, it’s actually a very important protection for consumers.
Back before US law required a notice of default, people were sometimes foreclosed on without any warning.
In fact, it’s happened even in the past few years – at least one bank has accidentally foreclosed on the wrong property and kicked people out of their house without due process or warning. It’s even happened around Omaha.
The notice of default is a very important step within the foreclosure process that gives people with an interest in the property to step forward and claim their rights – before it’s too late.
If you’ve received a notice of default, don’t wait. Time is definitely of the essence, and you should take action.
Here are a few key steps you should take:
1) Stay calm and don’t panic.
This may sound obvious, but it’s probably the most important. Anyone in foreclosure is dealing with a lot of stress beyond just the property. These situations don’t happen overnight, and they take a while to solve. You’ll get through it by practicing good coping techniques and taking good care of yourself and your family. Panic leads to bad decisions, so stay cool.
2) Educate yourself.
Learn everything you can about the foreclosure process in your state so that you know what’s happening and what’s coming up next.
3) Gather your resources.
There’s also many non-profit and government resources available out there. You’ll want good legal and tax advice along the way. Definitely don’t try to do it all yourself. This stuff is super complicated with lots of rules.
4) Learn your options.
We’re here to help you avoid foreclosure. We buy houses with cash. We can help you with short sales and even rent-back situations so you (potentially) may be able to keep living in your home. There are many more options than you think.
5) Communicate.
The banks involved don’t want your property. They want money, and what you say matters a lot. You can slow down or stop the foreclosure process if you take the appropriate action.
Want to know more?
Call us anytime at 402-595-8841 or connect with us on our website
and we’ll lay out all of your options for your specific situation.
Nebraska Foreclosure Process
In the State of Nebraska the foreclosure process is a little different than other States. If the real estate property is in Nebraska then you will have a Deed of Trust filed with the County where the property is located instead of a Mortgage.
A Deed of Trust and a Mortgage are both legal documents between a lender and a borrower that states the terms of the repayment of a loan with the Deed to the property as collateral and gives the lender the right to foreclose if there is a failure to pay. A Mortgage is between a lender and borrower only, where a Deed of Trust includes a 3rd party, the “trustee”, that holds the Deed until the loan is paid in full.
In the event the borrower does not fulfill the agreement to repay the loan, the trustee will initiate the foreclosure process on behalf of the lender. In Deed of Trust states, the process is much faster than Mortgage states because it does not have to have a court proceeding.
In Nebraska, the Trustee must deliver a Notice of Default to the borrower and record that with the County. The Trustee must also publish the Notice of Default in a local newspaper, and physically post the notice on the property, which gives public notice to the Borrower of a Trustee’s Sale (auction) that will be scheduled and held in person at the county courthouse. The Trustee will proceed with the sale /auction if the Lender does not notify them of any reason to postpone or cancel the auction.
Although this process can happen in as few as 2-4 months, there is still time for you to take action! Call us today to discuss your options so you can act quickly to avoid and stop foreclosure.