A Notice of Default (NOD) is the formal, recorded notice that starts foreclosure in non-judicial states. It is filed with the county recorder by the lender or trustee and states that the borrower is behind on the mortgage and that, unless the default is cured, the home may be sold. Receiving one is serious — but it is the beginning of a process with a cure window, not the end.
What an NOD contains
- The borrower and lender names and the property address
- The nature of the default (usually missed payments) and the amount needed to cure
- The deadline to reinstate the loan
- A warning that a Notice of Sale may follow if the default is not cured
What happens after the NOD
State law sets a reinstatement period. In California, for example, the borrower generally has until five business days before the sale — with the NOD recorded at least three months before a Notice of Trustee’s Sale can be recorded — to pay all arrears plus fees and costs and stop the foreclosure entirely. Other states set different windows (for example, about 30–90 days to cure in several non-judicial states). After the reinstatement period, the trustee can record a Notice of Trustee’s Sale, typically at least 20–21 days before the auction date in many states.
In judicial states there is no NOD; the equivalent trigger is being served with a foreclosure complaint and summons. Treat that paperwork with the same urgency — your deadline to respond is usually 20–30 days.
Your first week after an NOD
- Read it fully and note two numbers: the amount to cure, and the cure deadline.
- Call your servicer’s loss-mitigation department. Confirm the amount, ask about reinstatement, modification and other options, and get names and reference numbers.
- Call a HUD-approved counselor (1-800-569-4287) — free help, and they will review your budget and options with you.
- Gather documents servicers ask for: pay stubs, bank statements, a hardship letter, tax returns, and a monthly budget.
- Do not ignore later notices. A Notice of Sale means the auction is scheduled; options narrow sharply after it arrives.
- Watch for scams. An NOD is public record, so “rescue” offers will arrive by mail and phone. Legitimate counselors do not charge upfront fees.
Can an NOD be wrong?
Yes, occasionally — payments misapplied, escrow errors, or a loan that was already in a workout. If the amounts look wrong, dispute them in writing with the servicer right away and keep copies of everything. Errors do not pause deadlines on their own, so act on both tracks at once: dispute the error and pursue your options.