Day 44: Notice of Default

Credit Score: 759
Phone Calls: 9
Emails: 1
Mail: 3 (+1 that doesn’t count)

We got our Notice of Default yesterday! That makes “Day 43” the actual date of “Day 31,” which isn’t bad! I had estimated in my last post that Day 41 was the earliest we’d hear that we were in default. The letter was actually dated Day 36 (technically earlier than first contact +30, but I’m not complaining).  So the bank appears to be pretty on top of this.

Interestingly, the phone calls have stopped. Not a peep since my last post. Well, that or my voicemail is broken.

We have gotten some interesting paper mail though. Day 37, we got a general notice that says “You’re behind on your payments. We’re here to help.” It asked us to fill out the same paperwork we’d seen before where they want to know every detail of our income, expenses, and assets, and pointed out some of the government programs that we don’t actually qualify for. It even had a form to fill out to let them get a copy of our last taxes from the government.

Day 42 we got a notice from my original loan servicer actually – the local company I got the loan from, who then sold it to this bank. Their notice also pointed out the government programs I don’t actually qualify for. But just in case I felt like refinancing my home (provided the loan is only 125% the value), they’d be happy to help. Try 200% on for size, guys.

Then yesterday, Day 43, we got a letter from the bank saying we’re two payments behind and are officially in default. Legal and credit reporting actions may follow if I don’t call them back.

As one more piece of news, I checked the condo complex for sale listings. As of today, an equivalent unit is pending sale at $76,000. Three larger units are pending short sales between $80k and $90k. A smaller unit is pending short sale for $40k. And two larger units are on the market for $80k and $85k. Meaning, of the 7 homes listed in my complex, at least 4 are in some stage of foreclosure. Twice as many as the estimate given by CNN quoted in my Day Zero blog.

Coming up next, as soon as Day 61, they can report me to the credit bureaus as 90 days past due. As soon as Day 66, they can notify us of the trustee sale. Once we get that, they’re on a legal clock, albeit a long one, to finish this up. Also once we get that notice, we’ll know they’ve chosen foreclosure instead of to sue us.

Till then, we keep waiting.