Also known as: notice of default · NOD · notice of default and election to sell
Written by attorneys · grounded in primary & secondary sources — see below
A document sent or recorded by a beneficiary or trustee under a deed of trust that notifies each obligor of a default on the secured obligation and declares the intent to sell the property through nonjudicial foreclosure. The notice must separately reach each obligor and must state the nature of the default along with the amount of past-due payments, fees, and other charges. No foreclosure may begin until at least thirty days after the notice is sent.
Nalini Narula fell three months behind on her home loan secured by a deed of trust. The beneficiary sent Nalini a written notice of default and election to sell under the deed of trust that listed the past-due amounts and informed her of the right to cure. Thirty-one days later the trustee recorded a notice of sale because Nalini had not cured.
Nancy Nelson defaulted on payments secured by a deed of trust naming National Trust as beneficiary. National Trust directed the trustee to record a notice of default and election to sell under the deed of trust that separately reached Nancy and stated the exact arrears. The thirty-day cure period began to run upon delivery of that notice.
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Nathan Nguyen and Noelle North co-signed a note secured by a deed of trust on their residence. The beneficiary mailed each a distinct copy of the notice of default and election to sell under the deed of trust that detailed the default and cure rights. Foreclosure could not proceed until thirty days after both notices were sent.
The notice must state the nature of the default and, as of the date of the notice, the amount of all past-due payments, fees, and other charges owed to the creditor. It must also inform each obligor of the right to cure.
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A creditor may not initiate foreclosure until thirty days after sending the notice of default and right to cure separately to each obligor.
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No. The rights of a homeowner or obligor under the uniform act may not be waived, and the duties of a creditor may not be diminished by contract.
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Foreclosure cannot proceed because the statute requires separate written notice to each obligor before any foreclosure action may begin.
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