What Is a Notice of Default (NOD)?

In states where foreclosure runs outside the courts, the lender’s trustee records the notice of default after the borrower falls behind and a demand to cure goes unmet. The notice states the amount past due and opens a window in which the borrower can reinstate by paying what is owed plus fees. If that window closes without a cure, the next recorded steps, usually a notice of sale and then the sale itself, follow on a statutory schedule. In states that foreclose through the courts, a lawsuit starts the process instead and a lis pendens flags it. Names, time frames, and delivery rules differ by state.

Because notices of default are public records, they are a long-standing list source in wholesaling. Data vendors and county sites publish them by filing date, so a list can be sorted by how far along each foreclosure is. Callers read the date as a measure of urgency: a recent filing means the owner still has time and options, a late one may mean weeks. These calls need care. Many states regulate how anyone may approach homeowners facing foreclosure, and these owners have usually received a stack of mail and calls already. A clear, unhurried conversation stands out.

A notice marks a status; it does not settle how the story ends. Plenty of owners cure the default, sell, or file for bankruptcy, and any of those ends the opportunity. The notice also says nothing about equity: an owner can be deep in default with little or none. Confirm the amounts, the owner’s continued title, and the sale date, and expect postponements, which are common. Careful pre-foreclosure outreach is a call type VA Horizon staffs for wholesaling teams under a pay per qualified lead model.