What is a NOD (Notice of Default)?

A Notice of Default is a notice that is send to the borrower that demands payment for the past due mortgage payments, plus any applicable legal fees. The mortgage lender has the legal right to file a notice of default after the first missed mortgage payment, however, it is usually done after 3-4 missed payments. Any parties that may be affected by the foreclosure will typically receive a copy of the notice. The notice of default begins the preforeclosure period in the foreclosure process.