Notice Of Default

A formal written notice that a default has occurred and legal action may be taken as a result of the default. A notice of default is a written notice sent to the borrower stating that the borrower is in violation of the terms of the note and/or security instrument. The notice contains a time limit that the borrower has to cure or remedy the violation. When issued because of a delinquent monthly payment, this notice is usually sent out when the payment is 30 days delinquent.

A formal written notice to a borrower that there is a default on a loan and that legal action is possible.

A notice of default is a notification given to a borrower stating that he or she has not made their payments by the predetermined deadline. It dictates that if the money owed (plus an additional legal fee) is not paid in a given time, the lender may choose to foreclose the borrower's property. Any other people whom may be affected by the foreclosure may also receive a copy of the notification.