Notice of Default Form. You’ve sent notice after notice requesting payment, but your account holder just isn’t following through. Action must
be taken to inform them of their current delinquent status and what steps you plan to take to recoup what’s owed to you – even when it means reselling the said property.
Use this Notice of Default Form to provide proper notification to the parties involved.
You should break things down for them so there are little unanswered questions on why their account is in default – i.e. are they behind on their principal, their taxes, insurance, etc.
You can reuse this template to fit the circumstances at hand by easily doing a little tweaking!
NOTICE OF DEFAULT
_________as trustee (or beneficiary) under that certain deed of transfer in trust executed by ___________, as Trustor, to ____________, as Trustee and ______________, as beneficiary, dated _____________, recorded in Book ____, Page ___ of official records in the office of the County Recorder of _______ County, State of ____________, hereby give(s) notice that a breach of the obligation for which such transfer in trust is security has occurred, the nature of said breach being the failure to [state each item of default , such as the failure to pay principal, or installments thereof, interest, taxes, insurance, etc.], and that the Trustee (or beneficiary) elects to sell, or cause to be sold the trust property in order to satisfy said obligation.
[Insertion if default is curable]
YOU MAY HAVE THE RIGHT TO CURE THE DEFAULT DESCRIBED
HEREIN AND REINSTATE THE MORTGAGE OR DEED OF TRUST.
SECTION ______ OF THE CIVIL CODE PERMITS CERTAIN DEFAULTS
TO BE CURED UPON PAYMENT OF THE AMOUNTS REQUIRED BY THAT
SECTION WITHOUT REQUIRING PAYMENT OF THAT PORTION OF
PRINCIPAL AND INTEREST WHICH WOULD NOT BE DUE HAD NO
DEFAULT OCCURRED. WHERE REINSTATEMENT IS POSSIBLE, IF THE
DEFAULT IS NOT CURED WITHIN _______________ FOLLOWING THE
RECORDING OF THIS NOTICE, THE RIGHT OF REINSTATEMENT WILL
TERMINATE AND THE PROPERTY MAY BE SOLD.
TO DETERMINE IF REINSTATEMENT IS POSSIBLE AND THE
AMOUNT, IF ANY, NECESSARY TO CURE THE DEFAULT, CONTACT THE
BENEFICIARY OR MORTGAGEE OR THEIR SUCCESSORS IN INTEREST,
WHOSE NAME AND ADDRESS IS ________ AT ______________________.
ANY FAILURE TO COMPLY WITH THE PROVISIONS OF THIS
SUBDIVISION SHALL NOT AFFECT THE VALIDITY OF A SALE IN
FAVOR OF A BONA FIDE PURCHASER OR THE RIGHTS OF AN
ENCUMBRANCER FOR VALUE AND WITHOUT NOTICE.
[Trustee or Beneficiary]