Document background
The Notice of Intent to Foreclose is a crucial document in Indonesian lending practice that serves as a mandatory preliminary step before initiating formal foreclosure proceedings. This notice is required under Indonesian banking regulations and mortgage law, particularly when dealing with non-performing loans secured by property. The document must be issued in compliance with Law No. 4 of 1996 on Mortgage Rights and relevant OJK regulations, providing borrowers with clear information about their default status, the steps required to cure the default, and the consequences of non-compliance. The notice typically follows a period of missed payments and must be served before any formal foreclosure action can commence, ensuring due process and protecting both lender and borrower rights under Indonesian law.
