Final Notice of Default for Past Due Payments in connection with Contract for Deed - California 2025

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After the account defaults, the people you owe can: Pass the debt to a collection agency. Take court action. Ask a court to take back the vehicle or other goods on hire purchase.
If a borrower falls behind on mortgage payments, a lender or servicer may file a notice of default with a court or county recorders office. A notice of default is essentially a formal wake-up call from your lender, says Timothy Chase, a mortgage broker and owner of 719 Lending in Colorado Springs, Colorado.
You have 90 days from the date the Notice of Default is recorded to pay what you owe to the lender. If you pay the amount on the Notice of Default, the lender cannot sell your home. Notice of Trustee Sale If you dont pay within 90 days, a Notice of Trustee Sale will be recorded against your property.
What happens if I dont pay the notice of default? If you have not repaid the arrears or set up a repayment agreement with your creditor within 14 days of receiving the notice of default form, your credit agreement can be terminated and the default will be registered on your credit file for 6 years.
Contracts for deed are loans where the seller keeps the legal title of a home until the borrower makes all the payments. Some contracts for deed can provide a path to homeownership, but most carry risks.
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Once you default on your mortgage loan, the lender can demand that you repay the entire outstanding balance, which is called accelerating the debt. The lender can foreclose if you dont repay the total loan amount or cure the default.

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