3 Essential Mortgage Cancellation Letter Templates

Creating a mortgage cancellation letter involves communicating with your lender about terminating your mortgage agreement. These letters should be clear, concise, and contain all relevant information such as your loan number, personal details, and the reason for cancellation. Below are three unique templates to guide you in drafting your mortgage cancellation letter.

Template 1: Mortgage Cancellation Request Due to Financial Hardship





[Your Full Name]
[Your Address]
[City, State, Zip Code]
[Email Address]
[Phone Number]
[Date]

[Lender’s Name]
[Lender’s Company Name]
[Lender’s Address]
[City, State, Zip Code]

Dear [Lender’s Name],




I am writing to formally request the cancellation of my mortgage loan, identified by loan number [Loan Number], associated with the property located at [Property Address]. Unfortunately, due to unforeseen financial difficulties primarily caused by [briefly describe reason, e.g., “a recent job loss” or “unexpected medical expenses”], I am unable to continue meeting the repayment terms as originally agreed.

After careful consideration and consultation with financial advisors, I have concluded that it is in the best interest of all parties to seek an early termination of the mortgage agreement. I am aware of the implications this request may have and am prepared to discuss potential solutions that may include a short sale or handing over the deed in lieu of foreclosure.

Attached are documents supporting my current financial situation and a detailed proposal for handling this matter. I am keen to work closely with you to find a mutually agreeable resolution and avoid any negative impacts on my credit score and your portfolio.

I kindly request a meeting or a call to discuss this matter further. Please contact me at your earliest convenience. I appreciate your prompt attention to this urgent matter and look forward to your understanding and cooperation.

Thank you for your consideration.

Sincerely,

[Your Signature (if sending a hard copy)]
[Your Printed Name]


Template 2: Mortgage Cancellation Letter for Property Sale

[Your Full Name]
[Your Address]
[City, State, Zip Code]
[Email Address]
[Phone Number]
[Date]

[Lender’s Name]
[Lender’s Company Name]
[Lender’s Address]
[City, State, Zip Code]

Dear [Lender’s Name],

I am writing to notify you of my intent to sell the property located at [Property Address], which is currently under mortgage loan number [Loan Number]. As part of this process, I request the cancellation of the existing mortgage upon completion of the sale.

The sale of the property is scheduled to close on [Closing Date], and I anticipate that all mortgage dues will be settled from the proceeds of the sale. I request your cooperation in providing any necessary paperwork to facilitate this process smoothly and efficiently.

Please advise on the steps that need to be taken to ensure all formalities are correctly handled, and confirm the total payoff amount required to fully settle the mortgage as of the anticipated closing date.

Thank you for your attention to this matter. I hope for a swift and straightforward process and am available to provide any further information or documentation as required. Please feel free to contact me directly at [Your Phone Number].

Warm regards,

[Your Signature (if sending a hard copy)]
[Your Printed Name]


Template 3: Voluntary Mortgage Cancellation Proposal

[Your Full Name]
[Your Address]
[City, State, Zip Code]
[Email Address]
[Phone Number]
[Date]

[Lender’s Name]
[Lender’s Company Name]
[Lender’s Address]
[City, State, Zip Code]

Dear [Lender’s Name],

I am contacting you regarding my mortgage loan number [Loan Number] for the property located at [Property Address]. Due to [specific reason, e.g., “relocating overseas”], I am exploring options for early mortgage cancellation. I believe this decision is in the best interest of both parties given the current circumstances.

I propose to [describe your proposal, e.g., “make a lump sum payment of X amount, which represents a significant portion of the outstanding balance”]. This proposal aims to release both the lender and borrower from the current agreement amicably.

Enclosed are my proposed terms and conditions for your review. I hope that we can engage in discussions to finalize this arrangement to the satisfaction of both parties involved. I am committed to facilitating a smooth transition and ensuring all legal and financial obligations are met promptly.

Please let me know a convenient time for us to discuss this further or if you require additional documentation or details from my side. Your cooperation and assistance in finalizing this matter would be greatly appreciated.

Thank you for considering my request. I look forward to your positive response.

Best regards,

[Your Signature (if sending a hard copy)]
[Your Printed Name]


Each template serves different circumstances, so choose the one that best fits your situation and modify it as necessary to communicate effectively with your lender.