Notice of Default
[Home Equity Loan]
[Date]
[Name and address of borrower]
Re: [describe note and loan documents]
[Salutation]
This letter is to give you notice of default under the referenced loan documents on your Texas Constitution article XVI, section 50(a)(6), home equity loan. This default consists of [describe default; if the default is monetary, include the amount in default and the name of the mortgagee.]. I am attempting to collect this indebtedness, and any information obtained will be used for that purpose. This letter is being sent to your attention in accordance with state and federal law.
You are notified that if the default is not cured within twenty days from the date of posting of this letter, the mortgagee will enforce its rights under the loan documents. Specifically, the mortgagee will accelerate the maturity of your home equity note and declare due and payable the unpaid principal balance, together with accrued but unpaid interest and fees and expenses allowed by law. If the amount due is not timely paid, the mortgagee will seek a court order allowing the mortgagee to foreclose the lien you granted on your homestead under the loan documents in accordance with Texas Constitution article XVI, section 50(a)(6), and rules 735 and 736 of the Texas Rules of Civil Procedure.
In accordance with federal laws regarding fair debt collections, unless you, within thirty days after receipt of this notice, dispute the validity of the debt set forth above, or any portion thereof, the indebtedness will be assumed to be valid. If you notify the undersigned in writing within the thirty-day period that the indebtedness, or any portion thereof, is disputed, I will obtain a verification of the indebtedness, and I will mail you that verification. If within the same thirty-day period you request in writing the name and address of the original mortgagee, and if the original mortgagee is different from the current lender, I will furnish you with that information. Federal laws do not require that I wait until the end of the thirty-day period before taking action to collect the debt. If, however, you have requested verification of the debt or the name and address of the original mortgagee within the thirty-day period, I will cease collection activities until the requested information has been mailed to you.
If you have any questions, please consult your legal counsel.
Sincerely yours,
[Name of attorney]
Certified Mail No. [number]
Return Receipt Requested
c: [name of borrower], by first-class mail