Document background
The Notice of Intent to Foreclose Letter is a crucial document in New Zealand's mortgage enforcement process, required when a lender intends to exercise their power of sale over a mortgaged property. This document is utilized when a borrower has defaulted on their mortgage obligations and serves as the first formal step in the foreclosure process. It must comply with the Property Law Act 2007 and the Credit Contracts and Consumer Finance Act 2003, providing clear information about the default, the amount required to remedy it, and the consequences of non-compliance. The notice must allow the statutory minimum period of 20 working days for the borrower to remedy the default before further enforcement action can be taken. This document represents a critical juncture in the lending relationship and must be handled with precise attention to legal requirements and responsible lending obligations.
