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Sample Notice of Default ( By Assignee To Obligor)

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Sample Notice of Default By Assignee To Obligor

When a debtor or borrower can’t or doesn’t pay the debt on time to the creditor, the creditor has the right to declare the debtor as defaulter. This mostly happens in mortgage loan processes when a person gets a mortgage loan on a property and when he doesn’t pay the loan installments on time to the creditor or mortgage firm, the firm declares the debtor as a defaulter and takes legal action against him.

Introduction to the Notice of Default:

In case a debtor or borrower doesn’t return the borrowed money or mortgage loan on time to the creditor and has declared defaulter by the creditor, the creditor has the legal obligation to send a formal notice of default to the debtor in order to inform him and give him some time to respond to the notice, explain why he didn’t make the mortgage payments on time and arrange for the money. Usually, when a person is 4-6 payments behind his mortgage payments, the creditor or mortgage firm sends him the notice of default and asks him to respond or prepare himself for legal action i.e. forfeiture of property, seize and sale of property as collateral in order to safe return of the mortgage loan money.

What the creditor can do after sending you the Notice of Default?

Each state and country has its own terms and conditions and laws about what to do when a debtor is behind in loan payments. Usually, when a creditor declares a debtor as defaulter, he has to give him enough time before taking legal action against him. In case the debtor or defaulter doesn’t respond to the notice of default in time, the creditor can do either of these following actions.

  1. He can demand the full remaining payment of the mortgage loan from the debtor in a short period of time.
  2. He can sell the debt to a debt collection company or firm that will take action against the defaulter on behalf of the creditor.
  3. The creditor can file a case against the defaulter in the local court and request the court to take legal action against the defaulter.
  4. If the creditor has sent the defaulter some goods, he can start the process of collecting his order back as collateral.

How to respond to a Notice of Default?

  • When you receive a notice of default, always take care of it right away starting by reading the entire letter carefully and contacting your legal attorney to respond to it. Never throw it away or leave it to read later because most of the default notices have a certain period of time to respond.
  • If there is anything in the letter that you can’t understand, contact the sender and ask them to explain the part of the letter that you can understand.
  • Write a letter to the creditor in order to respond to the notice of default and before you send the letter, make a copy of it for the record purposes.
  • Set a meeting with the creditor, meet with him, explain why you are behind your loan payments, and ask him to give you time to arrange the money.

Here is a preview of a free sample Sample Notice of Default ( By Assignee To Obligor) created as a fillable PDF Form,

Sample Notice of Default By Assignee To Obligor

Here is download link for this Sample Notice of Default ( By Assignee To Obligor),

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