Notice Of Default

Written by Linda Alexander
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A Notice of Default or Lis Pendens is the initial document filed on a foreclosure. These are the documents you will use to identify pre foreclosures. A Notice of Default is used in non-judicial foreclosure states, while the Lis Pendens is used in states with judicial foreclosures.

The Notice of Default is filed with the county recorder. Many of them have searchable websites, so a search for these documents will often yield a list of owner names and document numbers. You might be able to view the documents online, otherwise you can go to the recorder's office to view them. The Notice of Default or Lis Pendens reference the original loan, the address of the home, and the amount that is in default.

Why Search for a Notice of Default?
Lenders are not allowed to release information about pre foreclosures, and homeowners aren't usually anxious to let the world know of their situation. But many documents dealing with real estate transactions are public, and are filed with the county recorder. So the county recorder's office is where you will find much of the information you need to begin investing in pre foreclosures.

The NOD or Lis Pendens gives public notice of the start of the foreclosure process and gives a buyer their first opportunity to profit. It also gives the homeowner time to catch up on payments or sell the home. If you buy the house during this reinstatement period, however, know that you are buying "subject to" all existing liens or other obstacles attached to the property.


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