Mortgage Default Letter Template for Germany

The Mortgage Default Letter is a critical document in German banking practice, issued when a borrower has failed to meet their mortgage payment obligations. It serves as a formal notification required under German banking regulations and the Civil Code (BGB) before initiating any enforcement proceedings. The letter must be carefully drafted to include specific default details, payment demands, and legal notices while ensuring compliance with consumer protection laws and data privacy regulations. This document is typically issued after initial payment reminders have been unsuccessful and represents a significant escalation in the default management process. The content and structure must meet strict legal requirements while remaining clear and understandable to the recipient, as it forms part of the documentary evidence should legal proceedings become necessary.

1. Sender Details and Date: Full legal name and address of the lending institution, including any relevant registration numbers

2. Recipient Details: Full name and address of the borrower(s), loan account number, and property address

3. Subject Line: Clear identification as a default notice (Mahnung) with reference to the mortgage agreement

4. Default Details: Specific information about the nature of the default, including missed payment amounts and dates

5. Payment History: Summary of relevant payment history and current outstanding amount

6. Demand for Payment: Clear statement of the amount required to remedy the default and the deadline for payment

7. Legal Consequences: Explanation of potential consequences if the default is not remedied, including possible enforcement actions

8. Remedial Actions: Clear instructions on how to remedy the default, including payment methods and contact information

9. Legal Requirements Notice: Mandatory legal notices required under German law, including right to object and data protection information