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The Demand Letter for Foreclosure is a crucial document in Philippine real estate and banking practice, serving as a prerequisite to foreclosure proceedings. It is typically used when a borrower has defaulted on their mortgage payments and the lender intends to exercise their rights to foreclose on the property. The document must comply with Philippine legal requirements, particularly Act 3135 governing extra-judicial foreclosure, the Civil Code of the Philippines, and relevant banking regulations. The letter includes essential information such as loan details, property description, default amount, payment demands, and consequences of non-payment. It represents a critical step in the foreclosure process, providing the borrower with a final opportunity to cure the default while establishing a paper trail for potential legal proceedings. The document is particularly important in the Philippine context where both judicial and extra-judicial foreclosure options exist, and specific legal protections like the Maceda Law may apply.

1. Sender's Details: Complete name, address, and contact information of the mortgagee/creditor

2. Date: Current date of the demand letter

3. Recipient's Details: Complete name and address of the mortgagor/debtor

4. Subject Line: Clear indication that this is a Demand Letter for Foreclosure with reference numbers

5. Loan Details: Specific information about the loan agreement, including date, principal amount, and interest rate

6. Property Description: Detailed description of the mortgaged property, including certificate of title number and location

7. Default Statement: Clear statement of the default, including the amount in arrears and period of default

8. Demand: Specific demand for payment, including total amount due, breakdown of principal, interest, and other charges

9. Notice of Consequences: Statement of intent to foreclose if payment is not made within the specified period

10. Payment Instructions: Clear instructions on how and where to make the payment

11. Closing: Formal closing with signature block for authorized representative