A note from a lender indicating that the borrower has fallen two months behind on his payments. At this point, the homeowner will have 2 – 3 months to pay off the owed amount before the lender will proceed with the foreclosure process. The lender files the notice of default in the county where the home is located and sends a copy to the buyer. The homeowners may work with their lender to refinance their loan or try to sell their home as a short sale if they owe more on the mortgage than the home is worth.