Received a Notice of Default in Bakersfield, CA? Here’s What to Do Next

Received a Notice of Default in Bakersfield, CA? Here’s What to Do Next

Prefer to watch? Here’s a quick 2½-minute overview of what to know after receiving a Notice of Default.

Receiving a Notice of Default can feel overwhelming.

For many homeowners, it brings up immediate questions like:

• Am I losing my home?
• How much time do I have?
• Can I still sell my house?
• Do I need a short sale?
• What should I do first?

If you’ve received a Notice of Default in Bakersfield or Kern County, the most important thing to know is this:

A Notice of Default does not automatically mean foreclosure is your only option.

Depending on your situation, you may still have options available to you.

That may include working with your mortgage servicer, selling your home if you have enough equity, or exploring a lender-approved short sale if the home may not sell for enough to pay off what is owed.

The most important thing is to start asking questions early.

What Is a Notice of Default?

A Notice of Default is an important step in the foreclosure process.

It generally means the mortgage servicer has recorded a notice because the loan is in default and the homeowner has fallen behind on mortgage payments.

This is a serious notice and should not be ignored.

However, it also does not automatically mean you have no time left and no choices left.

That is why homeowners should read every notice carefully, stay in communication with their mortgage servicer, and begin looking at their real estate options as soon as possible.

_{If you receive a Notice of Default, read every notice carefully and stay in communication with your mortgage servicer.}

Want a simple step-by-step guide? Download the free Bakersfield Homeowner Options Guide. Get the Free Guide

First Things First: Don’t Ignore It

One of the biggest mistakes homeowners make is avoiding the problem because it feels stressful or embarrassing.

If you’ve received a Notice of Default:

• Open and read all mail from your mortgage company
• Keep track of deadlines and notices
• Stay in communication with your mortgage servicer
• Find out what your home may currently be worth
• Start learning what options may be available

The earlier you act, the better.

Waiting until the last minute can make a difficult situation even harder.

Do I Automatically Need a Short Sale?

No.

This is one of the most important things for Bakersfield homeowners to understand.

Being behind on your mortgage does not automatically mean you need a short sale.

If your home can sell for enough to cover:

• your mortgage payoff
• any liens
• and the normal costs of selling

you may be able to complete a traditional home sale and keep any remaining equity.

A short sale may need to be explored when the home is expected to sell for less than what is owed and the lender agrees to accept less than the full amount owed.

That is why one of the first steps is to determine what your home may realistically sell for in today’s market.

What Options Might Be Available?

Every homeowner’s situation is different, but possible options may include:

1. Working with your mortgage servicer

Depending on your situation, your servicer may discuss possible foreclosure-prevention or loss-mitigation options with you.

2. Selling your home traditionally

If there is enough equity in the property, a regular home sale may allow you to pay off what is owed and avoid foreclosure.

3. Exploring a short sale

If the home may not sell for enough to cover what is owed, a lender-approved short sale may need to be considered.

4. Other lender-directed options

In some situations, the servicer may discuss additional alternatives depending on the loan and your financial circumstances.

Can I Still Sell My Home After Receiving a Notice of Default?

Potentially, yes.

Receiving a Notice of Default does not automatically prevent you from selling your home.

In fact, for some homeowners, selling before the situation becomes more serious may be one of the best ways to protect remaining equity or avoid a completed foreclosure.

The key question is whether the sale proceeds would be enough to satisfy the mortgage and other required costs.

If yes, a traditional sale may still be possible.

If not, a short sale may need to be explored.

_{Receiving a Notice of Default does not automatically prevent a homeowner from selling. The first step is understanding the home’s current value and what is owed.}

What Is a Short Sale?

A short sale happens when a home is sold for less than the amount owed on the mortgage and the mortgage servicer approves the sale.

For example:

Mortgage balance: $400,000
Expected sale price: $350,000

In that case, the lender would need to review the homeowner’s situation, the offer, the property value and the requested terms before deciding whether to approve the sale.

Short sales are not ordinary real estate transactions. They can involve additional documentation, lender communication, hardship information and approval timelines.

What Should I Do With Letters From My Mortgage Company?

Read them carefully.

Do not assume they are routine.

These letters may include:

• important deadlines
• requests for documentation
• information about foreclosure-prevention options
• decisions regarding an application
• legal or foreclosure-related notices

Keep copies and stay organized.

If you are trying to understand the real estate side of your situation, those notices may also help show where things currently stand.

Why Acting Early Matters

The earlier you start asking questions, the more time you may have to understand your options.

Homeowners often wait because they hope the situation will improve on its own.

But the truth is, most options become easier to evaluate when there is still time to:

• gather information
• determine home value
• review payoff information
• communicate with the lender
• decide whether a traditional sale or short sale makes sense

Even if you are not sure what you need yet, starting the conversation early is usually the better move.

_{Linda Bañales has decades of experience helping Bakersfield and Kern County homeowners through changing real estate markets, including short sales and distressed-property situations.}

How Linda Bañales Helps Bakersfield Homeowners

Linda Bañales is a Bakersfield Broker Associate with decades of experience helping Kern County homeowners through changing real estate markets.

If you’re facing mortgage trouble, Linda can help you understand the real estate side of your situation, including:

• whether a traditional home sale may still be possible
• whether a short sale may need to be explored
• what information may be needed on the sale side
• how the process generally works
• what questions to start asking

The goal is not pressure.

The goal is information, guidance and helping you understand what next step may make the most sense for your situation.

Start Here: Learn About Your Options

If you have received a Notice of Default in Bakersfield, CA, are behind on your mortgage, or think you may need a short sale, start by learning more about your options.

Read Linda’s Short Sale Q&A:

You do not need to know whether you need a short sale before reaching out.

Sometimes the first step is simply understanding where you stand.

Important Note

This article is provided for general educational purposes only and is not legal, tax, credit or financial advice. Homeowners should continue communicating with their mortgage servicer and should consult the appropriate attorney, tax professional, housing counselor or other qualified adviser regarding questions outside the scope of real estate brokerage.