Letter to Debtor Giving Notice of Deficiency after Sale
[Date]
[Name and address of debtor]
Re: [description of collateral, note, and security agreement]
[Salutation]
I have been retained as attorney for [name of creditor].
On [date of repossession], under the terms of the referenced note and security agreement and because of your default under their terms, my client repossessed the referenced collateral.
After giving proper notice, my client sold this collateral for $[amount], incurred expenses of sale of $[amount], and realized a net amount of $[amount].
After you are given full credit for this net amount realized, there remains a deficiency under the terms and conditions of the note of $[amount].
Please forward payment of the full amount of the deficiency under the terms of the agreement to my office immediately. I have been instructed that, unless I receive a certified check, cashier’s check, or money order for the full amount of the deficiency on or before [number] days after the date of this letter, I am to take whatever legal action is necessary to protect my client’s interests.
Enclosed is an addressed, postage-paid envelope for your payment.
Sincerely yours,
[Name of attorney]
Certified Mail No. [number]
Return Receipt Requested
Enc.
c: [name of creditor]