A home owner who takes out a mortgage (loan) is obligated to make monthly payments on the loan. Failure to do so results in the lender taking action. The first such action is to call the homeowner to find out why the homeowner is behind on his/her payments. If the homeowner fails to make payments within the month, collection activity kicks in. Such activity will continue in second month until the homeowner sends the lender the payment the lender is due. Failure to do so will trigger a Notice of Default (NOD). I some states, such as California, the homeowner has another 90 days to cure the default. Failure to do so will result in full-blown foreclosure proceedings. The lender will then send the homeowner the Notice of Trustee Sale (NTS). By law, the NTS must be in effect for 21 days before the home is sold at an auction.

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