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.
In Louisiana, foreclosure typically starts after the loan is delinquent after 120 days. There are federal laws in place where in most cases the servicer is required to work with the borrowers who are having trouble making payments to avoid foreclosure process.
Once the borrower is issued the foreclosure notice of default, it 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 is also 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 Baton Rouge.
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.
An uncontested foreclosure process can take anywhere from 180-270 days. This process can be delayed by the borrower contesting the action, filing for bankruptcy, etc.
Here are a few key steps you should take:
1) Stay calm and don’t panic.
This is important. Anyone in foreclosure is dealing with a lot of stress beyond just the property. This may take a while to solve but 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 calm. There are options.
2) Educate yourself.
Learn everything you can about the foreclosure process in Louisiana so that you know what’s happening and what’s coming up next. Here is a short pdf on the steps of foreclosure in Louisana: https://louisianalawhelp.org/files/79DDA0B7-0E71-F973-5E6C-BBF823D54172/attachments/11172C5B-A82A-90B7-0216-AA48E1A727A5/47519110-07-19%20The%20Foreclosure%20Process%20in%20Louisiana%20(2).pdf
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. The website for US Housing and Urban Developing has housing counseling available.
4) Learn your options.
We’re here to help you avoid foreclosure. We buy houses with cash in Baton Rouge. 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 more options than you think. Here is a good government resource to look at if you’d like to keep your house after you get your foreclosure notice of default and it also has some resources and programs available if your home ends up getting foreclosed on.
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?