Notice of Default (NOD)

A Notice of Default (NOD) is a formal notice sent by a lender to a borrower indicating that the borrower has failed to meet the loan agreement's terms, typically by missing mortgage payments. This document marks the beginning of the foreclosure process, where the lender may take back the property if the borrower does not remedy the situation, such as by making overdue payments. Receiving an NOD is serious and requires prompt attention, as it can lead to significant consequences, including the loss of the home.