Notice of contract default letter sample 2025

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A default notice is a letter the people you owe send to warn that: You are behind on payments. Your account may default.
A notice of default is a public record stating that a borrower is in default on their loan. A lender or servicer files a default letter as the first step in the foreclosure process. If you ignore a notice of default, you could lose your home so if you receive one, contact your lender as soon as possible.
Dear Sir/Madam, I entered into [an/the attached] agreement with you on [date] [invoice number can be added in brackets if necessary]. [You/name of company] failed to comply with the agreement. The agreement obliges [you/name company] to [explain the obligations the party has failed to comply with.
Dear : This letter relates to the promissory note dated , of which you are the maker, in the original principal amount of (the Note). I am My company is the current holder of the Note. This letter is to notify you that you have defaulted on the installment payment under the Note due on , in the amount of .
A Notice of Default (NOD) is a formal document recorded by your lender with the local County Recorders office in the county where your property is located, indicating that you have fallen behind on your mortgage payments. It serves as the first official step in the non-judicial foreclosure process.
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Contents of a Notice of Default Name and address of the borrower. Name and address of the lender. Name and address of the trustee. Legal description and address of the mortgaged property. Terms of the mortgage agreement that have been broken. Description of the default and the remedy required to bring the account up to date.
You should never ignore a notice of default because this is the first step of the foreclosure process, which means potentially losing your property. If you neglect your NOD, the lender can demand the entire loan balance rather than just the missed payments.

notice of default sample