Definition of Notice of Default:

Notice Of Default (Lis Pendens)/NOD:

A public notice filed with the Orange County Recorder’s Office stating that a mortgage borrower is behind in their payments. This is one of the first steps toward foreclosure, and if the borrower does not bring the mortgage current, the next step is for the lender to file a notice of sale for the property. However, if the borrower catches up on their payments, the foreclosure process will be halted – the lender can’t foreclose on a mortgage that is current.

Every lender has their own unique procedure and timeframe for filing a notice of default (NOD). Some are more forgiving and more willing to work with borrowers and may take longer to file the notice, while other lenders will file the notice as soon as they may legally do so (60 days delinquent). Having a notice of default filed against you can go on your credit report (if the lender reports to one of the three credit repositories) and adversely impact your credit score, making it difficult to refinance your mortgage and to obtain other types of credit.


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