You received a notice of default: what to do first
By Thomas Osei · Updated 2026-07-27
Opening a notice of default is unsettling, but it’s also the moment you have the most room to act. This notice exists specifically because New Jersey law requires lenders to give homeowners a defined window to fix the problem before a foreclosure lawsuit can even be filed.
Read the notice fully, then verify the numbers
The notice should state the exact amount needed to cure the default, the deadline to do it, and your right to dispute the debt. Before assuming the number is correct, request a full payment and fee history from your servicer in writing. Misapplied payments, incorrect late fees, and escrow errors are common enough that a second look is worth it, especially if your own payment records don’t match what the notice claims.
The first two weeks: a practical checklist
| Action | Why it matters | Timing |
|---|---|---|
| Read the notice completely, note the cure deadline | This date drives everything else | Day 1 |
| Request a written payment history from your servicer | Confirms whether the default amount is accurate | Within a few days |
| Gather income documents, hardship details, prior correspondence | Needed for any modification or attorney review | First week |
| Contact a HUD-approved housing counselor for a free review | Free, neutral second opinion on your options | First week |
| Consult a foreclosure attorney, even briefly | Clarifies whether you need representation now | Before the cure deadline |
| Avoid any company asking for upfront fees to “stop foreclosure” | A common scam pattern targeting homeowners in default | Ongoing |
What the notice does not mean
Getting this notice doesn’t mean the house is already lost, and it doesn’t mean the process is now unstoppable. It’s a required legal step, not the final one, and plenty of homeowners who receive one go on to catch up payments, get a modification, or otherwise resolve the situation without ever facing a sheriff’s sale. Panic tends to lead to rushed decisions, like signing something without reading it or ignoring the notice entirely; a clear-headed first two weeks matters more than a fast one.
Don’t assume you have to solve this alone or immediately
The notice period exists precisely so you have time to respond, not so you have to fix everything in a day. Options at this stage typically include catching up the missed payments in full, negotiating a repayment plan, applying for a loan modification, or, if the hardship is longer term, discussing bankruptcy as a way to stop the clock entirely through the automatic stay. Which option fits depends on your income, how much you’re behind, and whether the hardship is temporary or ongoing.
Watch for foreclosure rescue scams
Homeowners in default are a known target for scams: companies that charge large upfront fees and do little real work, “rescue” offers that ask you to sign the deed over temporarily, or anyone guaranteeing they can stop your specific foreclosure. Legitimate help doesn’t require large payments before any work is done, and a real attorney will explain their fee structure clearly, usually during a free initial consultation.
When to bring in an attorney
Even if you plan to try negotiating with the servicer yourself first, a short consultation with a foreclosure defense attorney early on can flag issues you might not catch, like an inaccurate default amount or a notice that doesn’t meet legal requirements, either of which can matter later if the case proceeds to court. Many consultations at this stage are free, so the main cost is time. If you’re still unsure whether hiring one makes sense yet, is a foreclosure attorney worth it walks through when negotiating on your own still works and when it doesn’t.
What to actually say when you call the servicer
Ask specifically for the loss mitigation or homeowner assistance department rather than the general customer service line, since front-line representatives often can’t discuss modification or repayment options in detail. Have your loan number ready, state plainly that you received a notice of default and want to discuss your options, and ask what documents they need to start a review. Write down the representative’s name, the date, and what was said, since servicing calls aren’t always consistent between representatives.
Keep a paper trail
Save every notice, letter, and email, and write down the date and summary of every phone call, including who you spoke with. If the case does move toward litigation later, this record can matter, and it costs nothing to keep now.
If you decide you want legal input, the homepage has local attorneys ranked using the method on the how we score page, so you can compare options before the cure deadline arrives.
FAQ
- Is a notice of default the same as a foreclosure lawsuit?
- No. It's the required warning that comes before a lawsuit can be filed. New Jersey law gives you at least 30 days from this notice to cure the default before the lender can file a foreclosure complaint in court.
- What if the amount on the notice looks wrong?
- Request a full payment history from your servicer in writing. Errors in fees, misapplied payments, and escrow miscalculations happen often enough that verifying the number yourself, or with an attorney, is worth the time before assuming it's accurate.
- Should I keep making partial payments after getting a notice?
- Check with your servicer or an attorney first. Some servicers reject partial payments once a default notice is issued and return them, which can create confusion about what's actually been paid. Get any partial payment arrangement in writing.
- How do I know if a company offering to help is a scam?
- Be cautious of anyone who asks for money upfront to 'save your house,' pressures you to sign over your deed, or guarantees a specific outcome. Legitimate housing counseling is free, and legitimate attorneys explain fees clearly before you pay anything.