default
Notice of Default
A formal written notice from a lender or seller declaring the borrower in default and starting the foreclosure or forfeiture process.
In depth
A notice of default identifies the breach, states the amount required to cure, sets a deadline, and warns of the consequences if not cured. State laws govern content, delivery method, and recording requirements. Misconception: a notice of default is not the same as filing foreclosure; it precedes the lawsuit or trustee's sale and sometimes opens the cure window. Practically, in non-judicial foreclosure states, the notice of default is recorded publicly to provide constructive notice. In contract for deed forfeiture, the notice usually requires personal service or certified mail with return receipt. Errors in the notice can derail the entire process, forcing the lender to start over. Always have an attorney prepare and serve notices of default, and document everything.
Educational content only. Definitions reflect typical usage in US owner-finance and FSBO transactions; statutes and case law vary by state. Consult a licensed real-estate attorney for fact-specific guidance.