Question Details

Brian, Home Buyer in Sacramento, CA

What does notice of default mean?

Asked by Brian, Sacramento, CA Tue Feb 5, 2008

Take this house for example:

http://www.trulia.com/foreclosure/2000579794--Santorini-Dr-E…

Is that what the house might be sold for? or is it jsut the remainder of the loan

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Answers

3
It means the buyer has defaulted on their mortgage obligation with the mortgage holder. Once this happens, the lender will file a "Notice of Default" with the County recorder. This is the start of the foreclosure process. Not all properties where a notice of default has been recorded actually make it to foreclosure but, can be a good indicator that it may soon be.

Is it an indication of what it might be sold for? Not so much. Sometimes the price it may be offered for if foreclosed and offered on the open market will be much less and sometimes much more than the defaulted loan amount. It will depend on whether their is a first and second and the second buys the first, if the loan amount was inflated at the time of recent loans and many other factors. One can reasonably assume that the price ultimately placed when entering the retail market will typically be close to comparable bank owned homes on the market. There is no free lunch but, in this market, there are some blue plate specials to be had if you are patient and persistent and....have a little luck. "Luck is when preparation meets opportunity". If you are considering the purchase of bank owned property....be prepared. Have a loan in place, proof of available funds to close and then have someone watching the market for the right property for you. The best deals are had in the first few hours they are made available. Are you ready? Feeling "lucky"? You had better be or, plan on picking through whats left to find a decent deal for..... the "lucky" ones will have already gotten the best of the best.
2 votes Thank Flag Link Tue Feb 5, 2008
The notice of default is the first legal action in the foreclosure process in California. The next steps will be publication and notice give to the public about the sale and the the trustee sale in 90-100 days.



Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee

http://www.milwaukeebailout.com
0 votes Thank Flag Link Sat Jul 10, 2010
Thank you for your question Brian. The Foreclosure process starts when a homeowner cannot pay the mortgage and ends when the home is resold.

The three stages of Foreclosure are: Pre-Foreclosure, Auction, and REO/Bank Owned.

Pre-Foreclosure is the time period a homeowner has to repay the delinquent amount of the mortgage.

If a homeowner does not pay the mortgage the home is auctioned

If the bids do not meet the reserve the lien holder (bank) reclaims the property and it becomes a Bank Owned REO.
0 votes Thank Flag Link Fri Jul 9, 2010
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