Letter of Default

A letter of default is the last letter a lender will send you when you have missed payments on a debt before they take supplemental action. If you have been missing payments on your mortgage, your lender will send you a letter of default. They will notify you that if you do not comply with the terms of the letter, they will begin to foreclose on your home. Letters of default are used in other areas as well, but they are most commonly used with home and car loans.


Starting to Write


Be firm but fair. Although the recipient has had several opportunities to meet their obligation, they may be in financial hardship or the victim of an unforeseen circumstance.


Keep the letter brief. You only need to provide details of the contract or account, such as the amount owed, dates, and repercussions for failing to respond.


Sign the letter to demonstrate the seriousness of the situation.

Sample Letters

Letter of Default on Mortgage Sample

Leonard P. Ronk

3174 Duff Avenue
Weybridge, VT 05753


Dear Mr. Ronk,

This letter is a formal notification that you are in default of your obligation to make payments on your home loan, account #546234. This current account holds the sum of $5,000, payable by July 1st, 2009.


This amount has been overdue since April 1st, 2009 and you have ignored multiple requests to make a payment or reconsolidate your debt.


Unless the full amount ($5,000) is received within 15 days, we have no choice but to begin the foreclosure process on your home. We have given you more than adequate notice on this issue, and we have no other choice.


Please act accordingly,

Peach Tree Lending Inc.

Letter of Contract Default Sample

Dear Harriett Martinez:


I am writing to inform you that you are now in default of your obligations outlined in our contract. Your company has not only failed to produce the desired amount of product within the agreed time, but the batch of items you did send us are not fit for purpose. You clearly have not met the required specification.


You have 30 days in which to cure this default, either by refunding us in full or demonstrating in some way that you can complete what we agreed in a reasonable amount of time.


Failure to do so will result in legal action. All of our rights reserved under this notice.



Mr. Willis


Letter of Default on Rental Property Sample

Dear Aaron Pipes,

This Notice of Rent Default is in regard to your lease on property:  6243 Iron Dale, Onion Creek, Nebraska, 68490-0360.


I am writing to notify you that since November 10, 2013, you have been in DEFAULT OF PAYMENT OF RENT, in the amount of $3,500. You have failed to pay rent of $700 a month for 5 months.


Failure to respond to this notice within 30 days will result in legal action, which may include but is not limited to: Eviction, reclaiming of the property, and a lien on your personal belongings if you are found to have abandoned the property.


Please provide immediate payment to halt these actions.



Mr. Elroy Chataway

Letter of Default on Promissory Note Sample

Dear Galvin Whitacre,

I am writing in regard to the promissory note dated 09/03/2009, for the amount of $11,500.


I hereby notify you that you have defaulted on the aforementioned note by failing to pay the instalment amount of  $479 on the due date: 07/05/2010.


Therefore I have no other choice but to demand full payment of the entire balance of $11,500.


Should you fail to make this payment within 60 days, I will be forced to take legal action which could incur more costs on your behalf.



Mr. Sheridan Hilbert


Hilbert Lenders