What is a notice of default in a foreclosure?

A notice of default in a foreclosure is a document served by a lender to a homeowner when they are behind on their mortgage payments. This document is the first step in the foreclosure process in Massachusetts and is also known as a foreclosure “complaint” or “petition”. The notice of default outlines the amount of the defaulted payments and the penalties that are associated with failing to pay back the loan. It also explains the foreclosure process and the time frame the homeowner has to catch up on the mortgage payments before the foreclosure proceedings can begin. The notice of default also provides the homeowner with the opportunity to reinstate the loan before the foreclosure sale takes place. This is when the borrower pays the outstanding amount owed to the lender, plus any fees or costs associated with the foreclosure process. If the loan is reinstated, then the foreclosure process stops and the loan remains in the name of the homeowner. However, if the homeowner fails to reinstate the loan before the foreclosure sale, then the lender will auction off the property and the homeowners rights to the property will be terminated.

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What is a notice of default in a foreclosure?

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