Michigan Sample Letter for Demand on Guarantor

• Category: Letters - Nonlegal - Demands
• State: Multi-State
• Control #: US-0364LR
• Format: Word; Rich Text

Description

Sample Letter for Demand on Guarantor

[Your Name] [Your Address] [City, State, ZIP Code] [Email Address] [Phone Number] [Date] [Guarantor's Name] [Guarantor's Address] [City, State, ZIP Code] Subject: Demand Letter for Outstanding Loan Repayment as Guarantor Dear [Guarantor's Name], I hope this letter finds you in good health and high spirits. I am writing to address an urgent matter regarding a loan agreement between [Borrower's Name] and [Lender's Name]. As you have acted as the guarantor for this loan, it is my duty to inform you of the current financial situation and demand payment on behalf of the lender. According to the terms specified in the loan agreement dated [Loan Agreement Date], [Borrower's Name] borrowed [Loan Amount] from [Lender's Name]. As the guarantor, you provided your guarantee to ensure repayment of the loan. However, I regret to inform you that [Borrower's Name] has failed to fulfill their obligations under the agreement. The outstanding loan balance, which currently stands at [Outstanding Amount], includes the principal as well as late fees and accrued interest. The due date for full repayment was on [Due Date], yet despite multiple reminders and extension offers, [Borrower's Name] has not shown any effort to rectify this situation. This default has exposed you as the guarantor to potential legal and financial consequences. Michigan's law, particularly the Guaranty Agreement Act (MCL 600.2091), holds the guarantor liable for the obligations of the borrower. Therefore, we kindly request that you settle the outstanding balance within [Demand Period] days from the receipt of this letter to avoid the lender pursuing legal action against both you and [Borrower's Name]. Please find attached a detailed statement of the outstanding balance, including a breakdown of the principal, interest, and any applicable fees. To facilitate prompt payment, kindly remit the full amount via [Preferred Payment Method] to [Lender's Name] at the address mentioned below: [Lender's Name] [Address] [City, State, ZIP Code] Alternatively, should you have any questions or require further clarification, please do not hesitate to contact [Lender's Representative] at [Lender's Phone Number] or [Lender's Email Address]. Failure to fulfill your obligations as the guarantor within the specified timeframe will leave the lender with no choice but to commence legal proceedings against you and [Borrower's Name]. These actions may include filing a lawsuit, seeking a judgment, and pursuing collection efforts to recover the outstanding amount, which could significantly impact your creditworthiness and financial stability. We sincerely hope that this matter can be resolved amicably and without the need for further legal involvement. Your prompt attention and immediate action regarding this demand letter will be greatly appreciated. Thank you for your prompt attention to this matter. Sincerely, [Your Name] [Your Title/Affiliation (if applicable)]