Deal Pack Blog
What is a Right to Cure Letter?
A right to cure letter is a letter from a lender to a borrower after the event of a default or delinquency occurs on the contracted loan terms. Unfortunately a right to cure letter is a necessity in the lending industry. Second only to understanding what one is, would be understanding all the complexity involved in sending one.
The laws regarding the sending of this letter vary from state to state. To complicate things further the language and verbiage required in the letter will also vary. Due to this level of variation and the importance of the communication, it is best to consult your state laws before procuring a right to cure document to be sent to borrowers.
Despite the variations within the right to cure letters, most right to cure letters include standard provisions established to accomplish essential goals. These goals are to inform the borrower of the delinquency, inform the borrower the time frame and payment amount that is necessary to bring the account current, and inform the borrower of the lenders’ rights and actions available which may be taken.
For any lender the task of sending out and keeping track of right to cure letters is not only unfortunate, but must be undertaken with a solid understanding and attentiveness. For lenders using Deal Pack Pro, the letter writer section eases the tension of this process, by allowing the lender to create the right to cure letter on the screen, assign it in the system as a right to cure letter, and send it to the borrower. Tracking concerns are eased as well, as once the letter is sent in Deal Pack, it will stamp remarks on file indicating that a right to cure document was sent. Better yet, reports are also available to track the history of the letters!