The Demand Letter

• Author: Rebecca A. Taylor
• Pages: 99-104

The Demand Letter

Chapter 11

99

Though your client may have missed loan payments for months,

there is usually one final warning before a foreclosure actually hap-

pens: the demand letter. The reason that your client receives a de-

mand letter is typically because of the following paragraph from

the Single Family-Fannie Mae/Freddie Mac Uniform Instrument with

the Mortgage Electronic Registration Systems (MERS) or similar

provisions of your client’s mortgage:

NON-UNIFORM COVENANTS. Borrower and Lender fur-

ther covenant and agree as follows:

22. Acceleration; Remedies. Lender shall give notice to Bor-

rower prior to acceleration following Borrower’s breach of

any covenant or agreement in this Security Agreement (but

not prior to acceleration under Section 18 unless Applicable

Law provides otherwise). The notice shall specify: (a) the

default; (b) the action required to cure the default; (c) a date,

not less than 30 days from the date the notice is given to

Borrower, by which the default must be cured; and (d) that

failure to cure the default on or before the date specified in

the notice may result in acceleration of the sums secured by

this Security Instrument, foreclosure by judicial proceeding