Also known as: notices of default · NOD
Written by attorneys · grounded in primary & secondary sources — see below
A written communication from a creditor or lessor to a debtor or lessee stating that a default has occurred under the agreement. The notice typically identifies the nature of the default, the amounts due, and any right to cure within a specified period before further remedies such as foreclosure or lease enforcement may be pursued.
Nora Nash fell three months behind on her home loan payments. Nexus Financial sent Nora a written notice of default and right to cure by certified mail, detailing the past-due amounts and giving her thirty days to bring the account current. When Nora failed to cure within that period, Nexus initiated foreclosure proceedings under state law.
Northern Manufacturing leased equipment to Navarro Industries. After Navarro missed two quarterly payments, Northern sent a formal notice of default specifying the amounts owed and demanding cure within ten days. Navarro ignored the notice, so Northern repossessed the equipment without further warning under the lease terms.
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Nightingale Healthcare contracted with Nolan Nunez for medical supply deliveries. When Nunez failed to meet delivery deadlines, Nightingale issued a notice of default describing the breaches and granting a fifteen-day cure window. Nunez did not cure, allowing Nightingale to terminate the contract and pursue damages.
Nicholas Nunez secured a loan with a deed of trust on his commercial property. After defaulting on payments, the lender recorded and mailed a notice of default to Nicholas, stating the delinquency and the right to reinstate before foreclosure sale. Nicholas took no action, so the trustee proceeded with the sale.
The notice must state the nature of the default, including all past-due payments, fees, and other charges owed as of the date of the notice. It must also inform the obligor of the right to cure within thirty days before foreclosure may begin.
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Under the Uniform Home Foreclosure Procedures Act, the rights of a homeowner or obligor may not be waived and the duties of a creditor may not be diminished by contract. In lease agreements governed by UCC Article 2A, however, the parties may agree that no notice is required.
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A creditor may not initiate foreclosure until thirty days after sending the notice of default and right to cure to each obligor. The notice starts the cure period and must be sent separately to every person obligated on the loan.
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Failure to send the required notice prevents the creditor from proceeding with foreclosure or other enforcement remedies until the notice is given and the cure period expires. Courts treat proper service as a condition precedent to those remedies.
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…vesting and clogged its equity of redemption under the mortgage. Defendant Pergola subsequently served Symphony with separate notice of default dated April 4,1985, informing Symphony that it was exercising the option on behalf of all defendants pursuant to sections 1, 3 (b) and 3 (d) of the option agreement and setting the closing…