Notice of Default

A Notice of Default is a formal written warning from a lender or mortgage servicer indicating that a borrower has fallen behind on their mortgage payments, typically after missing a certain number of payments. It notifies the borrower that they are in breach of their loan agreement and that unless they take action—like paying overdue amounts or working out a solution—the lender may proceed with foreclosure, which is the process of selling the property to recover the owed money. Essentially, it’s an official step alerting you that your mortgage delinquency is serious and needs addressing.