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Notice of Default and Election to Sell Under Deed of Trust

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NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST

Recording Requested by:

After Recording Return to:

--------Above This Line Reserved For Official Use Only----------------

IMPORTANT NOTICE

IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR PAYMENTS, IT MAY BE SOLD WITHOUT ANY COURT ACTION, and you may have the legal right to bring your account in good standing by paying all of your past due payments plus permitted costs and expenses within the time permitted by law for reinstatement of your account, which is normally five business days prior to the date set for the sale of the property.

No sale date may be set until three months from the date this Notice of Default may be recorded (which date of recordation appears on this notice). This amount is $ as of , 20 , and will increase until your account becomes current.

While your property is in foreclosure, you still must pay other obligations (such as insurance and taxes) required by your note and deed of trust or mortgage. If you fail to make future payments on the loan, pay taxes on the property, provide insurance on the property, or pay other obligations as required in the note and deed of trust or mortgage, the beneficiary or mortgagee may insist that you do so in order to reinstate your account in good standing. In addition, the beneficiary may require as a condition to reinstatement that you provide reliable written evidence that you paid all senior liens, property taxes, and hazard insurance premiums.

Upon your written request, the beneficiary or mortgagee will give you a written itemization of the entire amount you must pay.

You may not have to pay the entire unpaid portion of your account, even though full payment was demanded, but you must pay all amounts in default at the time payment is made.

However, you and your beneficiary or mortgagee, may mutually agree in writing prior to the time the Notice of Sale is posted (which may not be earlier than the end of the three-month period stated above) to, among other things, (1) provide additional time in which to cure the default by transfer of the property or otherwise; or (2) establish a schedule of payments in order to cure your default; or both (1) and (2).

Following the expiration of the time period referred to in the first paragraph of this notice, unless the obligation being foreclosed upon or a separate written agreement between you and your creditor permits a longer period, you have only the legal right to stop the sale of your property by paying the entire amount demanded by your creditor. To find out the amount you must pay, or to arrange for payment to stop the foreclosure, or if your property is in foreclosure for any other reason, contact:

If you have any questions, you should contact a lawyer or the governmental agency which may have insured your loan.

Notwithstanding the fact that your property is in foreclosure, you may offer your property for sale, provided the sale is concluded prior to the conclusion of the foreclosure.

REMEMBER, YOU MAY LOSE LEGAL RIGHTS IF YOU DO NOT TAKE PROMPT ACTION.

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What the Notice of Default and Election to Sell Under Deed of Trust Is

Notice of Default and Election to Sell Under Deed of Trust is a formal written notice used by a beneficiary or trustee to declare a borrower in default under a deed of trust and to state the trustee's intention to conduct a nonjudicial foreclosure sale. It identifies the secured obligation, the amount needed to cure the default, and the planned sale procedure or date. Issuance of the notice usually starts statutorily required waiting periods and notifies interested parties so the trustee can proceed under the deed and applicable state foreclosure law.

Why a Clear, Compliant Notice Matters

A properly drafted Notice of Default and Election to Sell Under Deed of Trust preserves enforcement rights, triggers required cure periods, and reduces the risk of challenges to a nonjudicial sale. It provides transparency to the borrower and affected lienholders while meeting statutory notice requirements.

Why a Clear, Compliant Notice Matters

Who Prepares and Who Receives This Notice

Lenders, trustees, loan servicers, title companies, and foreclosure counsel commonly prepare or review this notice when initiating nonjudicial foreclosure.

  • Lenders and beneficiaries: document default and authorize the trustee to pursue sale and recovery of secured amounts.
  • Trustees and servicers: calculate cure amounts, schedule sale, manage recording, mailing, and publication obligations.
  • Title companies and escrow agents: verify chain of title, prepare recording entries, and confirm lien priorities before sale.

Borrowers and their representatives also receive the notice and should review cure options and deadlines promptly to preserve rights.

Core Components of a Professional Notice of Default and Election to Sell

A compliant notice combines legal identifiers, a clear default description, cure instructions, service details, and record-keeping elements designed for enforceability across jurisdictions.

Document ID

Include loan number, trust deed recording information, and county recorder reference so the notice ties directly to the underlying secured instrument and is verifiable on public records.

Default Statement

Clearly describe the specific covenant breached (payment, insurance, taxes), the default date, and supporting facts so the notice is precise and defensible in any legal challenge.

Cure Amount

Itemize the amount required to cure the default, including outstanding principal, accrued interest, late charges, advances, and reasonable costs to avoid ambiguity and reduce dispute risk.

Sale Procedure

State the manner, date, time, and place of sale or the process by which a sale date will be set, following the deed terms and state statutory requirements for nonjudicial foreclosure.

Service Details

List the method and date of service to borrowers and lienholders (mail, publication, posting) and include certification of service to evidence compliance with notice rules.

Recording and Notice

Indicate recording instructions for the notice with county records and any publication or posting obligations, plus contact information for the trustee or agent handling the sale.

Security and Compliance Data to Include

Encryption: AES-256 at rest; TLS 1.2/1.3 in transit
Access Controls: Role-based access and SSO/SAML options
Audit Trail: Timestamped action log and IP addresses
BAA Availability: HIPAA BAA available when required
Standards: SOC 2 Type II and ISO 27001
File Types: PDF and DOCX preservation-friendly formats

Primary Legal Risks and Consequences of Defective Notices

Invalid Service: May void sale or require re-noticing
Incorrect Amounts: Can expose trustee to liability
Timing Errors: Missed waiting periods delay enforcement
Improper Publication: Failure to publish may invalidate notice
Recordation Omission: Title defects and buyer challenges
Borrower Litigation: Potential damages and attorney fees

Common Preparation and Service Pitfalls to Avoid

  • Using vague default descriptions that fail to identify the specific covenant or date of breach, creating grounds for borrower challenge.
  • Omitting advances or fees from the cure amount, which leads to understatements and later disputes over required payment to reinstate.
  • Serving notice only by mail when state law or the deed requires posting, publication, or in-person delivery in addition to mailing.
  • Failing to record the notice or keep a certified service affidavit, which complicates title transfer and exposes the trustee to claims.

Step-by-Step: Preparing and Issuing the Notice

Follow a clear, documented sequence from confirming default to serving notices and recording to maintain procedural compliance and evidentiary proof.

  • 01
    Confirm Default: Verify account status and contractual breach details.
  • 02
    Calculate Cure: Itemize unpaid principal, interest, fees, and advances.
  • 03
    Draft Notice: Include deed references, default facts, and sale procedure.
  • 04
    Serve and Record: Record with county and serve all required parties.

How Notice Delivery and Foreclosure Flow Typically Work

A predictable flow — preparation, recordation, service, and sale — helps demonstrate compliance with deed provisions and state statutes.

  • Record Notice: File the notice in the county recorder's office.
  • Mail to Borrower: Send certified or statutory mail as required.
  • Publish If Needed: Place public notices in designated publications.
  • Conduct Sale: Hold trustee's sale per deed and state rules.

Digital Workflow Configuration for Notice Preparation

Suggested digital settings and fields to standardize preparation, reduce errors, and create an auditable record for each notice.

Field Configuration
Notice Date Use MM/DD/YYYY; auto-fill from system clock
Loan Identifier Link to loan record; required lookup validation
Cure Amount Field Calculated sum of defined ledger items
Service Log Attach certified mail receipts and publication proofs

Delivery Options and Platform Capabilities to Consider

Choose delivery channels consistent with deed language and state service rules, and use platforms that capture an audit trail for each step.

  • Certified Mail: Accepted in most states for borrower service
  • Publication: Newspapers per county rules when required
  • eRecording: Electronic recorder support where available

Integration with document management and county recording systems reduces manual steps; ensure any eDelivery method satisfies statutory notice and evidence requirements.

Typical Timelines and Statutory Deadlines

Deadlines vary by state and deed terms; confirm local statutes. Common timelines set cure opportunity windows and minimum days between notice and sale.

Cure Period:

Commonly 30 days to cure, but state law may require longer

Notice-to-Sale Gap:

Minimum days between notice and sale vary; often 14–90 days

Recording Deadline:

Record promptly to protect priority and provide public notice

Publication Schedule:

Follow county rules for frequency and duration when publishing

Preservation Period:

Retain records for statute of limitations and title defense

eSignature Vendor Comparison for Preparing and Serving Notices

Pricing and feature availability vary; below is a concise vendor comparison focused on starting price, trial availability, bulk send, audit trail, and HIPAA compliance.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions and Troubleshooting

Answers to common procedural and legal questions about Notice of Default and Election to Sell Under Deed of Trust to help avoid preparation and service errors.


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