An agreement that creates an interest in real property as security for an obligation, such as the payment of a note, and that is to cease upon the performance of the obligation, is called a mortgage. The person whose interest in the property is given as security is the mortgagor. The person who receives the security is the mortgagee (e.g., lender). A release, deed of reconveyance, deed of release, or authority to cancel is used by a mortgagee to renounce a claim upon a person's real property subject to the mortgage.
Letter Tendering Final Payment of Amount Due Pursuant to a Promissory Note Secured by a Mortgage in Order to Obtain a Release of the Mortgaged Premises
State:
Multi-State
Control #:
US-01272BG
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Word;
Rich Text
Instant download
Description
Definition and meaning
The Letter Tendering Final Payment of Amount Due Pursuant to a Promissory Note Secured by a Mortgage is a formal document that notifies the mortgagee of the borrower's intent to pay the outstanding balance of a promissory note. This payment is necessary to secure a release of the mortgaged property. The letter serves as an official record of the payment transaction, including the details regarding principal, interest, and any additional release fees.
How to complete the form
Completing the letter involves several key steps:
- Identify the mortgagee and include their name and address.
- Specify the date on which the original mortgage was executed.
- Provide the mortgagor's details including their name and address.
- State the exact amount tendered, breaking it down into principal, interest, and release fees.
- Include your name and signature if you are an attorney.
Make sure to double-check all entries for accuracy before sending the letter.
Key components of the form
A well-prepared letter includes the following essential components:
- Date: The date the letter is signed.
- Mortgagee Information: Full name and address of the mortgagee.
- Mortgagor Information: Name and address of the person making the payment.
- Loan Details: Original mortgage execution date, along with the book and page number where it was recorded.
- Payment Breakdown: Clearly stated amounts for principal, interest, and any applicable fees.
These elements ensure that the document is complete and legally binding.
Who should use this form
This form is typically used by individuals who have taken out a mortgage and wish to settle their outstanding balance. It is designed for:
- Borrowers who want to pay off their promissory note secured by a mortgage.
- Attorneys representing mortgagors in finalizing a mortgage release.
- Real estate professionals aiding clients in the payment and mortgage release process.
Using this form helps ensure that all legal requirements are met for the release of the property.
Common mistakes to avoid when using this form
To ensure the effectiveness of the letter, be cautious about the following common mistakes:
- Omitting critical details such as the mortgagee's contact information.
- Failing to accurately calculate the total payment amount.
- Not signing the letter if it is prepared by an attorney.
- Sending the letter without confirming receipt with the mortgagee.
Avoiding these errors can prevent delays in the mortgage release process.
Legal use and context
This form is legally significant as it facilitates the conclusion of a mortgage agreement. By submitting this letter, the borrower is formally notifying the mortgagee of their intent to satisfy the promissory note, thus triggering the potential release of the mortgaged premises. Using the correct format and substantiating the payment provides clear legal grounds for the release of the mortgage.
Benefits of using this form online
Utilizing an online platform to obtain and complete this form offers several advantages:
- Accessibility: Users can conveniently access the form from anywhere at any time.
- Efficiency: The online format saves time and reduces paperwork.
- Guidance: Online templates often come with instructions to assist users in completing the form correctly.
- Cost-effective: Downloading and using online forms can be more affordable than hiring legal counsel for simple transactions.
These benefits contribute to a smoother experience for users needing this specific legal document.
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FAQ
Name of Claimant. This is the name the party to be paid, and the party who will be signing the lien waiver document. Name of Customer. Job Location. Owner. Exceptions. Claimant's Signature. Claimant's Title. Date of Signature.
An "Unconditional Waiver and Release Upon Final Payment" extinguishes all claimant rights upon receipt of the payment. A "Conditional Waiver and Release Upon Final Payment" extinguishes all claimant rights upon receipt of the final payment with certain provisions.
An unconditional release means that there are no restrictions on the release of the lien. This type of lien release is often used in final project documents to confirm that the project is complete, payment has occurred, and you release all future rights to file liens on the project.
Lien Release: After a lien has been filed, the California claimant can release or cancel the lien by filing a Mechanics Lien Release form with the county recorder's office where the lien was originally recorded.