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June 22, 2017
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Notice of Default and Intent to Accelerate Letter - Foreclosure is On The Way

Legal Situations Article # 29 - June 16, 2017
by Stephen Carnell

The Notice of Default and Intent to Accelerate Notice or Letter is the first step in the foreclosure process. Some mortgage companies/banks begin this legally required step of foreclosure even during a loan modification review. They do this in order not to delay the foreclosure longer should they not feel it is in their best interest to offer you a loan modification.

If you have enough money in the bank so that auto-deductions would not cause problems, you can ask the bank to directly deduct the payment from your account each month. Sometimes, the banks even give customers some sort of incentive (such as a reduced interest rate) when the customers sign up for automated payments.

The Notice of Default and Intent to Accelerate Notice or Letter is the first step in the foreclosure process. Some mortgage companies/banks begin this legally required step of foreclosure even during a loan modification review. They do this in order not to delay the foreclosure longer should they not feel it is in their best interest to offer you a loan modification.

Although unusual a company could send a Notice of Default and Intent to Accelerate Notice letter with only a few missed payments. If there are additional fees and expenses owed on the account besides the two monthly payments this is also taken into consideration by the company.

Should you receive a foreclosure sale notice immediately contact a bankruptcy attorney even though they may be telling you the loan modification is still under review. Also, continue to make payments and ask for an accounting to determine if in fact, you may owe more than you realize.

The mortgage company does not have to wait any specific amount of time after you are in default to foreclose, and they are only required to send the notice 21 days before the foreclosure sale.

If you are able to bring the mortgage current, they may accept and reinstate you. They don't have to do that, but in the current economy they may be more willing to reinstate you in order to avoid another property on their books.

Not all mortgages have a requirement that they give you notice prior to acceleration. However, the majority of them do. In the standard Fannie Mae mortgage (doesn't mean your loan is Fannie:/Freddie) there is a paragraph 22 and paragraph 15 regarding the notice. If they send first class mail, it is deemed sent once they mail it. If it's sent certified, then they need return receipt.

Most of the bank witnesses are trained to state the notice is sent first class and that's it.  There are several cases which address paragraph 22 and the requirements. If you have a hearing on a motion for judgment on the pleadings you definitely need to run to an attorney. There is a difference between a motion to strike and motion for judgment on the pleadings. 


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