You have missed a few mortgage payments and are hoping to catch up on your mortgage. Yet, you have not been successful in catching up on your missed mortgage payments. Now you have received your Notice of Default or it can be called your Notice of Foreclosure or Notice of Right to Cure.
Be aware that this article applies strictly to a Notice of Default in Massachusetts. If you have received your notice in default in another state please contact local professionals as every states foreclosure laws vary.
What is A Notice of Default in Massachusetts?
A Notice of Default is just that. Your mortgage company is informing you that you are late on your mortgage and you have 150 days to cure or bring your mortgage current. In some instances the days to cure could be 90 days and not 150 days, if there has been failed attempts at negotiating a settlement.
From the date on the notice you have a 150 days to to bring your mortgage current including all interest and penalties.
Do not panic. You have options and you have almost 6 months to come to a resolve.
What Is My Timeline After Receiving Your Notice of Default
1st Notice- Notice of Default which we have already gone through.
2nd Notice- Acceleration Notice will be sent saying that your entire mortgage is now due. This must be sent at least 21 days in advance of the foreclosure sale.
3nd Notice- After completing the 150 days, your mortgage company has to file under the Service Member Relief Act. Basically it gives you 20 days to respond if you have rights for being in the military.
4th Notice- The Notice of Foreclosure Sale must be sent at least 14 days prior to the foreclosure auction.
All together you have over 6 months to try and rectify your situation.
What Options Do I Have to Foreclosure
Like I said, if you received your Notice of Default in Massachusetts, don’t panic. You have a little bit of time. There are a handful of option to avoiding foreclosure on your home. I will briefly lat them out here but for a more detailed article check out Options to Foreclosure in Massachusetts.
- Catch up Your Mortgage- First and foremost this is the simplest option. Catching up your mortgage is the simplest way to make all of this go away with as little impact to you as possible.
- Loan Modification- A loan modification is where you contact the bank and negotiate repayment terms that may work for you. Learn more about loan modifications.
- Bankruptcy- Another option is bankruptcy. If you can clear some debt and make your mortgage payments affordable with the relief from other consumer debt, then bankruptcy can be an option to consider.
- Loan Deferment- If you can show the bank your situation is temporary they may defer your payments for a small period of time to allow you to get back on your feet.
- Short Sale- A short sale allows you to sell your home for a less than the loan balance, avoiding the foreclosure process as well as potentially be forgiven of any deficiency balance. learn more about doing a Massachusetts Short Sale.
- Foreclosure Defense– If you believe the mortgage company is foreclosing on you illegally you can always hire a foreclosure defense attorney.
- Let the Bank Foreclose– You always can just let the bank foreclose on your home. Maybe you just don’t want to go through the hassle.
The best thing you can do is not wait until you start getting notices. Often a home owner will already have gone months if not sometimes well over a year of missed mortgage payments before receiving a notice. Be proactive and explore your options early.
The closer you get to an auction date the less likely someone can help you. Just this weekend I received a call from a homeowner wanting to do a short sale 10 days before his auction date. This just not allow enough time. If the underwater homeowner had called my 3 months ago, or when he first received his notice of default or when he missed his first couple of mortgage payments I could have helped.
Secondly be realistic about your circumstances. Ask yourself, what is likely to change that will allow me to catch up my mortgage and allow me to continue to make timely mortgage payments. Often times stressed out homeowners will make poor decisions based upon hope rather than reality.
What are those poor decisions? Chasing an option that is not really a reality. For example, if you are not working, you will not get approved for a home modification. You still need to qualify for a modification just like applying for a home mortgage.
About the Author
Kevin Vitali has provided I Received My Notice of Default in Massachusetts. I am located in Tewksbury Massachusetts and have been helping distressed homeowners for over 10 years. If you have a scenario you would like to discuss with me please feel free to contact me at 978-360-0422. I would be happy to review your situation and help you decide what options you may have to foreclosure.