Posted on: 31st Dec, 2008 03:04 pm
Is a notice of default the same thing as an notice of accelaration?What is the difference?...I have been offered a reinstatement of my loan by my lender. It includes attorneys fees of $3,000. I live in North Carolina and my deed of trust says that I should recieve a Notice Of Default and a 30 day right to cure. I was never sent an NOD that I am aware of and never given the right to cure. I was not late with my payments and unlike other foreclosure victims I have proof. The lender never debited my account for the month that they were supposed to and when I sent in checks to catch up on my payments he refused to cash the checks, saying they were partial payment. I have a letter from my lender stating that they did not debit my account and that it was no fault of mine and that I am not being penalized for it. I have all the money to catch up on the payments as I was never late in the first place. I will not pay the attorneys fees because I never should have been given an acceleration notice before I had the right to cure. I believe they are trying to illegally foreclose on me. I never recieved any notifications in the mail pertaining to my loan from my new loan servicer when it was sold to them in August. It is my understanding that they are supposed to send me something within 15 days of the loan transfer. Are they supposed to send me something within 15 days of the transfer? Their lawyer told me that the acceleration of the note and the NOD are one in the same and the acceleration letter serves as the NOD. That is not how I understand it when I read my Deed of Trust. I believe I have the right to cure without paying attorneys fees. What do you think?
Hi potterjon!
Welcome to forums!
A notice of default is issued to a borrower when he/she has not made their payments on the due date. The notice states that if the money owed along with the additional legal fee is not paid on the due date, then the lender will have the right to foreclose the property.
An acceleration clause, on the other hand, will allow the lender to demand the payment of the outstanding loan balance immediately for various reasons. However the common reasons for sending acceleration notice include: borrower defaults the loan or when a transfers of title to another individual without informing the lender.
I think in your case you have received a acceleration of the note because you have defaulted on the mortgage payments.
"I was not late with my payments and unlike other foreclosure victims I have proof. The lender never debited my account for the month that they were supposed to and when I sent in checks to catch up on my payments he refused to cash the checks, saying they were partial payment."
Did you sent them partial payment checks or did you sent them the right amount? Did you ask the lender why he did not debit your account on time?
If the deed of trust mentions about 30 day right to cure, then you should get that. You should speak to the lender about this clause.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
A notice of default is issued to a borrower when he/she has not made their payments on the due date. The notice states that if the money owed along with the additional legal fee is not paid on the due date, then the lender will have the right to foreclose the property.
An acceleration clause, on the other hand, will allow the lender to demand the payment of the outstanding loan balance immediately for various reasons. However the common reasons for sending acceleration notice include: borrower defaults the loan or when a transfers of title to another individual without informing the lender.
I think in your case you have received a acceleration of the note because you have defaulted on the mortgage payments.
"I was not late with my payments and unlike other foreclosure victims I have proof. The lender never debited my account for the month that they were supposed to and when I sent in checks to catch up on my payments he refused to cash the checks, saying they were partial payment."
Did you sent them partial payment checks or did you sent them the right amount? Did you ask the lender why he did not debit your account on time?
If the deed of trust mentions about 30 day right to cure, then you should get that. You should speak to the lender about this clause.
Feel free to ask if you have further queries.
Sussane
I'm in the process of a loan modification and the company is asking me to sign a letter that clearly states, "your loan has been accelerated, that your loan shall remain accelerated until you are informed otherwise by AHMSI in writing, and that your compliance will all of the terms and conditions of this letter agreement will not serve to reinstate (or in any way "de-accelerate") your loan." What does that mean?
Hi Lanny,
I personally feel that you have received a notice of acceleration. Acceleration clause is mainly included in mortgages as it gives the holder the right to demand the entire outstanding balance to be paid in full in case of a default. You will not be able to de-accelerate the clause.
I personally feel that you have received a notice of acceleration. Acceleration clause is mainly included in mortgages as it gives the holder the right to demand the entire outstanding balance to be paid in full in case of a default. You will not be able to de-accelerate the clause.
I thought well at least in the state of california the lender was required to give you a 90 day notice? What happened to that?
I just received a forclusure letter due to the fact that I defaulted on my loan payments due to the economy, Could still pay the overdue balance or do they need the full amount of the loan
Hi lorrie,
In the state of California, as per the California Foreclosure Prevention Act lenders need to give an additional 90 day period after serving a notice of default. This means the timeline from filing a notice of default to a notice of sale is extended by 90 more days. The existing timeline was 3 months, now it will be 3 months plus 90 days.
Hi Anne,
When you signed the mortgage promissory note, you promised to pay off the mortgage in full. So, you are legally bound to pay off the entire amount of the loan. If the property is foreclosed and there is a deficiency, you will be held responsible for the deficiency. The lender can either forgive the deficiency or can come after you to collect it.
In the state of California, as per the California Foreclosure Prevention Act lenders need to give an additional 90 day period after serving a notice of default. This means the timeline from filing a notice of default to a notice of sale is extended by 90 more days. The existing timeline was 3 months, now it will be 3 months plus 90 days.
Hi Anne,
When you signed the mortgage promissory note, you promised to pay off the mortgage in full. So, you are legally bound to pay off the entire amount of the loan. If the property is foreclosed and there is a deficiency, you will be held responsible for the deficiency. The lender can either forgive the deficiency or can come after you to collect it.
Paid 117,000. plus all fees and seller carried note for 1 year have accurred charges of 4,000 does lender need to notify me in writing demanding all amount due or can he sell it out from under me?
Lender informs me they accelerate my loan on 18 Aug 2010. How long do I have to vacate property?
Steve, that's a question for your lawyer, but take heart. You won't be tossed out anytime soon. They're simply laying the groundwork for the legal manuevers to have you vacate eventually. No matter what, you ought to at least get a legal opinion, instead of relying on someone like me who has no legal expertise. I may have a good base of knowledge, but I'm not licensed to say things that might mislead you.
Yeah, that's right, a license is needed for a lawyer to mislead you.
Sorry...just had to say that after I'd typed what I'd typed.
Yeah, that's right, a license is needed for a lawyer to mislead you.
Sorry...just had to say that after I'd typed what I'd typed.
Howdy all,
I just got a notice of acceleration in Aug 16 and I believe the lawyer firm did not have original promissory note. What should I do?
I just got a notice of acceleration in Aug 16 and I believe the lawyer firm did not have original promissory note. What should I do?
If you're sure that the lender does not have the original promissory note, then you can challenge the lender at the courthouse. You can contact an attorney and take his opinion in this matter as well.
Ray, it isn't necessary that the attorney for the lender have an original copy of the promissory note. A photocopy will suffice. If you signed a note, you're on the hook for the loan. If you've made payments over time, I suspect that will implicate you in being a borrower, too.