Below is a sample letter for cancellation of mortgage. It should be written in formal business-letter style and sent by certified mail with next day delivery. The borrower should request return receipt. Since there is a time limit for rescission, the borrower must have proof that they acted in good time. The borrower should keep a copy of this letter and keep it with the return receipt. After about a week, the borrower should call the lender and find out the status of the cancellation request. It is also recommended for the borrower to visit the Registry of Deeds in their city about one week after they have cancelled the mortgage to make sure the mortgage, if recorded, was released immediately after the rescission notice was received.
Sample Letter for Cancellation of Mortgage
Name of Borrower
Address of Borrower
City, State, Zip Code
Name of Loan officer
Name of Lending Institution or Bank
Address of Lender
City, State, Zip Code
RE: Cancellation of my mortgage number NUMBER
Dear Name of Loan Officer:
This letter is in reference to our phone conversation on DATE when I informed you that I wanted to cancel my mortgage and a formal notification in writing. I applied for the loan on DATE and submitted all the required documents for approval and closing. However, I have discovered a lender who will give me a lower interest rate on the same amount required for my mortgage. I am informing you within the time limit of 72 hours of closing, so I have the right of rescission.
Kindly cancel my mortgage application and return all the documents to me. I will be happy to come to the bank and get the documents whenever you inform me they are ready. I understand that the credit check and appraisal fees are refundable, but the application processing fee and rate lock-in fee may not be refundable. I will pay any cancellation fee if you inform me at the time I get the documents. I am requesting a formal Release of Mortgage document.
I can be reached at Phone Number or at Email Address if you have any questions. Kindly let me know on or before DATE when I can pick up my documents.
Signature of Borrower
Printed Name of Borrower
By Andre Bradley