When the homeowner can no longer make payments as required by the terms of the note and mortgage that was used to finance the purchase of the property, the lender or party bringing the action is generally required to send the homeowner a “notice of default and acceleration of the mortgage” consistent with the terms of the mortgage. This notice of default and acceleration of the mortgage advises the homeowner of the lender’s intent to accelerate the amounts due on the loan and notice that the lender may possibly initiate a foreclosure proceeding against the homeowner if the homeowner does not “catch up” and cure the default. Depending on the terms of the client’s mortgage, this notice will be sent at least thirty days prior to filing the foreclosure complaint.
The lender, if it does not receive the entire balance due by the deadline outlined in their notice of default will refer the loan to a foreclosure attorney to file a foreclosure complaint against the homeowner. After sending the notice of default and sending the file to a foreclosure attorney, the foreclosure attorney who intends to initiate the foreclosure action may also send the homeowner a demand letter giving the homeowner thirty days to make a payment on the balance of the loan. If the homeowner fails to pay the full loan balance within thirty days, the lender’s attorney will file with the clerk of court a foreclosure complaint and a “lis pendens.” A lis pendens is a notice to the public that there is a lawsuit being filed affecting the property.
