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A few potential ways to stop a foreclosure and keep your home include reinstating the loan, redeeming the property before the sale, or filing for bankruptcy. Working out a loss mitigation option, like a loan modification, will also stop a foreclosure.
In Montana, lenders may foreclose on mortgages and trust indentures that are in default by using either judicial foreclosure or non-judicial foreclosure. A judicial foreclosure involves filing a lawsuit that allows the court to order the foreclosure.
In the context of mortgage foreclosure, a notice of default is a formal notice that a lender filed with courts to notify the borrower who has failed to make payments that the lender intends to conduct a sale foreclosure.
Technically speaking, a notice of default is not a foreclosure. Instead, it serves as notice that you are behind in your payments and that your property may be sold as a result of foreclosure if you don't act soon.
If the homeowner can't pay, then after the 120 days a foreclosure sale is publicly performed at the house and the highest bidder is awarded the home. Once this happens, the homeowner can no longer redeem their home.
Usually by the third missed payment the lender will enter a notice of default. Also, the lender will charge you for costs to prepare the legal papers. So now you have legal fees, late fees, and your late payments to pay. Next, the mortgage lender will publish a notice of foreclosure, called a Notice of Trustee's Sale.
If the Defendant does not file a proper written answer within 20 days, Plaintiff is entitled to a Default Judgment. It is the Plaintiff's responsibility to file a written motion for a Default Judgment and attach an Affidavit of Amount Due. A judgment fee is not required for a Default Judgment.