Most lenders use the notice of default in non-judicial foreclosure, where the lender goes through an out-of-court process to auction the property. However, some lenders may serve the notice as the final notification to the borrower before the lender initiates the foreclosure process to seize the property. Lenders serve the notice as a formal warning to the borrower that they risk losing the mortgaged property if they do not settle the delinquent mortgage payments. When a borrower receives a notice of default, it does not mean that the lender has initiated the foreclosure process on the mortgaged property. A statement that if the default is not cured before the allowed duration, the lender will sell the mortgaged property at a public auction.The grace period within which the borrower is allowed to respond to the notice.Actions that the lender will take if the borrower does not comply.Description of the default and the remedy required to bring the account up to date.Terms of the mortgage agreement that have been broken.Legal description and address of the mortgaged property.The main contents of a notice of default include: The foreclosure process starts when a lender files a notice of default with the court. The notice of default includes information about the borrower and mortgage loan, such as the name and address of the borrower, a description of the property, and information about the lender.A notice of default is the final step of the mortgage foreclosure process.A notice of default is a notification sent to a borrower informing them that their mortgage payments are in arrears.

Default notice sample