The Breach Letter

Lenders are required to send out this letter before officially beginning the foreclosure proceedings. The letter will inform the homeowner of default, as well as any action need to resolve the default, and then a due date for this resolution. The last part of the letter explains what happens if the default is not resolved by the due date, which is usually debt acceleration and property sale. The due date is usually about 30 days from the day the letter is received by the homeowner. If that grace period expires and the homeowner does not resolve the default, then the servicer usually refers the file to their attorney to start the foreclosure process.