What to Do After Receiving a Notice of Default

A step-by-step action guide to help you respond quickly, understand your options, and protect your home. Time is critical—follow these steps immediately.

Time-Sensitive: In Texas, you typically have 20-30 days from receiving this notice to take action before foreclosure proceedings advance. Don't wait—start with Step 1 today.

Quick Action Summary

Days 1-3

Read notice, gather documents, contact your lender

Days 3-10

Get counseling, explore options, submit applications

Days 10-20

Take decisive action: modify, sell, or reinstate

Your Progress

0 of 70 items completed

Check off items as you complete them to track your progress.

Day 1

Don't Panic—Read the Notice Carefully

Take a deep breath. Receiving a Notice of Default is serious, but you still have time and options. Read the entire notice carefully to understand exactly what it says.

Action Items:

Locate the date the notice was sent or posted
Find the total amount needed to cure the default (reinstatement amount)
Note the deadline to cure the default (typically 20-30 days in Texas)
Identify who sent the notice (lender name and contact information)
Check if there are any specific instructions or requirements
Make copies of the notice for your records

Day 1

Calculate Your Timeline

Understanding your timeline is critical. In Texas, you typically have at least 20 days from receiving the notice to take action before the foreclosure process advances.

Calculate Your Timeline

Enter the date you received your Notice of Default to generate your personalized foreclosure timeline.

Days 1-2

Gather Your Financial Documents

Collect all relevant financial documents. You'll need these whether you're negotiating with your lender, seeking counseling, or exploring options to sell.

Action Items:

Recent pay stubs or proof of income (last 2-3 months)
Bank statements (last 2-3 months)
Tax returns (last 2 years)
Current mortgage statement showing balance and payment history
List of monthly expenses and debts
Hardship letter explaining why you fell behind (job loss, medical emergency, etc.)
Any other financial documents (retirement accounts, assets, other debts)

Days 2-3

Contact Your Mortgage Servicer Immediately

Call your mortgage servicer's loss mitigation department as soon as possible. The earlier you contact them, the more options you may have available.

Action Items:

Call the phone number on your Notice of Default
Ask to speak with the Loss Mitigation or Foreclosure Prevention department
Have your loan number and financial documents ready
Ask about available options: loan modification, repayment plan, forbearance
Request a complete breakdown of what you owe (principal, interest, fees, costs)
Ask for the deadline to submit a loss mitigation application
Take detailed notes: date, time, representative name, and what was discussed
Request written confirmation of any agreements or next steps

Days 3-5

Contact a HUD-Approved Housing Counselor

HUD-approved housing counselors provide free or low-cost advice and can help you understand your options and negotiate with your lender.

Action Items:

Find a HUD-approved counselor at www.consumerfinance.gov/find-a-housing-counselor
Schedule an appointment as soon as possible (many offer phone/video consultations)
Bring all your financial documents to the appointment
Discuss your situation honestly and explore all available options
Ask the counselor to help you create an action plan
Request assistance with completing loss mitigation applications if needed

Days 5-10

Explore All Your Options

Based on your financial situation and goals, evaluate which option is best for you. Each has different requirements, timelines, and impacts.

Action Items:

Reinstatement: Pay all past-due amounts to bring loan current (if you have funds)
Loan Modification: Permanently change loan terms to make payments affordable
Repayment Plan: Add extra to monthly payments to catch up over 3-6 months
Forbearance: Temporarily reduce or pause payments (3-12 months)
Refinance: Get a new loan with better terms (requires good credit and equity)
Short Sale: Sell for less than owed with lender approval
Deed in Lieu: Voluntarily transfer property to lender
Sell to a cash buyer: Quick sale to avoid foreclosure (like EnterActDFW)
Bankruptcy: Chapter 13 can stop foreclosure and allow catch-up over 3-5 years

Days 7-14

Submit a Complete Loss Mitigation Application

If you're pursuing a loan modification, repayment plan, or other lender assistance, submit a complete application as soon as possible.

Action Items:

Request the application package from your servicer
Complete all forms accurately and thoroughly
Include all required documentation (income proof, bank statements, hardship letter)
Make copies of everything before submitting
Submit via certified mail or online portal (keep tracking confirmation)
Follow up within 3-5 days to confirm receipt
Respond promptly to any requests for additional information
Know your rights: Servicers must review complete applications submitted more than 37 days before sale

Days 10-20

Consider Selling Your Home Quickly

If you have equity or want to avoid foreclosure's credit impact, selling quickly may be your best option. EnterActDFW specializes in helping homeowners in this situation.

Action Items:

Get a professional market analysis to understand your home's value
Calculate your equity (market value minus what you owe)
If you have equity: List with a realtor or sell to a cash buyer
If underwater: Discuss short sale option with your lender
Contact EnterActDFW for a fair, no-obligation cash offer
Understand that selling stops foreclosure and may preserve your credit
Move quickly—you need time to close before the foreclosure sale date

Ongoing

Know Your Rights and Protections

Federal and Texas laws provide important protections during the foreclosure process. Understanding your rights helps you make informed decisions.

Action Items:

You have the right to reinstate your loan up to 20 days before the foreclosure sale
Servicers must review you for loss mitigation if you apply more than 37 days before sale
You cannot be foreclosed on while a complete loss mitigation application is pending
You have the right to request information about your loan and foreclosure timeline
You can dispute errors in your account or foreclosure process
Scammers cannot charge upfront fees for foreclosure assistance
You have the right to live in your home until the foreclosure sale is complete

Immediately

Take Action—Don't Wait

The worst thing you can do is ignore the notice. Every day that passes reduces your options. Take action now to protect your home and your future.

Action Items:

Don't ignore letters or calls from your lender
Don't pay anyone upfront fees for foreclosure help
Don't sign over your deed to anyone promising to "save" your home
Don't assume you have no options—you do
Do act quickly—time is your most valuable resource
Do seek help from legitimate sources (HUD counselors, attorneys, licensed real estate professionals)
Do stay in your home—leaving doesn't stop foreclosure and may limit your options

Download Your Action Checklist

Get a printable PDF checklist to track your progress through each step. Stay organized and ensure you don't miss critical deadlines.

View Printable Checklist

How EnterActDFW Can Help You

Fast, Fair Cash Offers

We can make you a no-obligation cash offer within 24 hours. If you have equity in your home or want to avoid foreclosure's credit damage, selling quickly may be your best option.

Close in as little as 7-10 days
No repairs, no fees, no commissions
We handle all paperwork and closing costs

Expert Guidance & Support

Agent Felecia Fair has helped over 200 Texas families navigate foreclosure. She'll walk you through your options with compassion and transparency—no pressure, just honest advice.