Paying off your mortgage is a huge financial milestone, and one of the key documents you'll receive is a Mortgage Lien Release Letter Sample. This letter is basically proof that you no longer owe money on your home and that the lender has given up their claim to it. It's super important to understand what this letter is and why you need it, so let's break it down.
What is a Mortgage Lien Release Letter?
Think of a lien like a flag a lender puts on your house to say, "This house is collateral for the loan." When you pay off your mortgage, they need to take that flag down. A Mortgage Lien Release Letter is the official document that does exactly that. It tells everyone, especially your county recorder's office, that the debt is satisfied and the lien is no longer in effect. This is a critical document for proving clear ownership of your property.
Here’s what you'll typically find in a Mortgage Lien Release Letter Sample:
- Lender's Information (Name and Address)
- Borrower's Information (Your Name and Address)
- Property Address
- Loan Number
- Date the Mortgage was Satisfied
- A clear statement that the lien is released
- Lender's Signature and Notarization
Why is this so important? Imagine trying to sell your house down the line. A buyer, or their lender, will want to see that there are no outstanding claims on the property. This letter is your proof! It’s also important for your own records, acting as a final piece of evidence that your mortgage obligation is complete.
Here’s a quick look at when you might need this letter:
| Scenario | Why the Letter is Needed |
|---|---|
| Selling Your Home | To show the new owner and their lender clear title. |
| Refinancing | To remove the old lien before placing a new one. |
| Title Issues | To clear up any confusion or errors in public records. |
Example: Standard Mortgage Lien Release Letter After Full Payoff
[Lender Name]
[Lender Address]
[Lender City, State, Zip]
[Lender Phone Number]
[Lender Email Address]
Date: [Date]
To Whom It May Concern,
Subject: Release of Mortgage Lien - Property at [Property Address]
This letter serves as official confirmation that the mortgage lien recorded against the property located at [Property Address], [City, State, Zip Code] , with the associated loan number [Loan Number] , has been fully satisfied.
The aforementioned mortgage was originated by [Borrower Name(s)] . Payment in full has been received by [Lender Name] , and as such, we hereby release and forever discharge any and all claims, demands, and liens that we may have had against the property mentioned above as of the date of this release.
This release is effective as of [Date Mortgage Was Satisfied] .
Please record this release in the public records of [County Name] County, [State] , to provide official notice of the satisfaction of this mortgage.
Sincerely,
_________________________
[Authorized Signer Name]
[Title]
[Lender Name]
State of [State]
County of [County]
On this ____ day of __________, 20__, before me, a Notary Public in and for said County and State, personally appeared [Authorized Signer Name] , known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same for the purposes therein contained.
WITNESS my hand and official seal.
_________________________
Notary Public
My Commission Expires: _________________________
Example: Partial Release of Lien for Property Subdivision
[Lender Name]
[Lender Address]
[Lender City, State, Zip]
[Lender Phone Number]
[Lender Email Address]
Date: [Date]
To Whom It May Concern,
Subject: Partial Release of Mortgage Lien - Portion of Property at [Original Property Address]
This letter confirms a partial release of the mortgage lien recorded against the property originally identified as [Original Property Address], [City, State, Zip Code] , under loan number [Loan Number] .
This partial release pertains to the following described portion of the property, which is being subdivided or sold:
[Detailed Legal Description of the Portion Being Released]
The release of this specific portion is granted upon the condition that the remaining portion of the property continues to be secured by the original mortgage, and all terms of the loan agreement remain in full force and effect for the remaining secured property.
This partial release is effective as of [Date of Partial Release] .
Please record this partial release in the public records of [County Name] County, [State] .
Sincerely,
_________________________
[Authorized Signer Name]
[Title]
[Lender Name]
State of [State]
County of [County]
On this ____ day of __________, 20__, before me, a Notary Public in and for said County and State, personally appeared [Authorized Signer Name] , known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same for the purposes therein contained.
WITNESS my hand and official seal.
_________________________
Notary Public
My Commission Expires: _________________________
Example: Release of Lien After Foreclosure (by Lender)
[Lender Name]
[Lender Address]
[Lender City, State, Zip]
[Lender Phone Number]
[Lender Email Address]
Date: [Date]
To Whom It May Concern,
Subject: Release of Mortgage Lien Following Foreclosure - Property at [Property Address]
This letter serves as confirmation that following the foreclosure proceedings related to the mortgage loan number [Loan Number] , the lien on the property located at [Property Address], [City, State, Zip Code] , has been officially satisfied by the completion of said foreclosure.
All rights, title, and interest previously held by [Lender Name] under the aforementioned mortgage have been extinguished through the foreclosure process as of [Date of Foreclosure Sale or Completion] .
This document is for record-keeping purposes and to confirm the discharge of the lien upon the completion of the legal foreclosure process.
Sincerely,
_________________________
[Authorized Signer Name]
[Title]
[Lender Name]
State of [State]
County of [County]
On this ____ day of __________, 20__, before me, a Notary Public in and for said County and State, personally appeared [Authorized Signer Name] , known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same for the purposes therein contained.
WITNESS my hand and official seal.
_________________________
Notary Public
My Commission Expires: _________________________
Example: Release of Lien After Short Sale
[Lender Name]
[Lender Address]
[Lender City, State, Zip]
[Lender Phone Number]
[Lender Email Address]
Date: [Date]
To Whom It May Concern,
Subject: Release of Mortgage Lien - Property at [Property Address] - Short Sale Agreement
This letter confirms that pursuant to the terms of a short sale agreement executed on [Date of Short Sale Agreement] , the mortgage lien held by [Lender Name] on the property located at [Property Address], [City, State, Zip Code] , loan number [Loan Number] , is hereby released.
This release is contingent upon the successful closing of the short sale as per the agreement. The sale has been completed on [Date of Short Sale Closing] , and the agreed-upon proceeds have been received.
[Lender Name] hereby releases and discharges all claims, demands, and liens against the property mentioned above, effective as of the date of the short sale closing.
Please record this release in the public records of [County Name] County, [State] .
Sincerely,
_________________________
[Authorized Signer Name]
[Title]
[Lender Name]
State of [State]
County of [County]
On this ____ day of __________, 20__, before me, a Notary Public in and for said County and State, personally appeared [Authorized Signer Name] , known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same for the purposes therein contained.
WITNESS my hand and official seal.
_________________________
Notary Public
My Commission Expires: _________________________
Example: Release of Lien After Bankruptcy Discharge
[Lender Name]
[Lender Address]
[Lender City, State, Zip]
[Lender Phone Number]
[Lender Email Address]
Date: [Date]
To Whom It May Concern,
Subject: Release of Mortgage Lien - Property at [Property Address] - Bankruptcy Discharge
This letter serves as official confirmation of the release of the mortgage lien held by [Lender Name] on the property located at [Property Address], [City, State, Zip Code] , loan number [Loan Number] .
This release is issued following the successful discharge of the debt in bankruptcy proceedings for [Borrower Name(s)] , as confirmed by the court order dated [Date of Bankruptcy Discharge] .
While the personal obligation to repay the debt has been discharged, please be advised that the lien on the property may continue to exist unless otherwise addressed by separate agreement or court order specific to lien stripping. This letter confirms the lender's acknowledgment of the bankruptcy discharge.
For specific details regarding the lien's status post-bankruptcy, please refer to the bankruptcy court records or consult with legal counsel.
Sincerely,
_________________________
[Authorized Signer Name]
[Title]
[Lender Name]
State of [State]
County of [County]
On this ____ day of __________, 20__, before me, a Notary Public in and for said County and State, personally appeared [Authorized Signer Name] , known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same for the purposes therein contained.
WITNESS my hand and official seal.
_________________________
Notary Public
My Commission Expires: _________________________
Example: Release of Lien for an Estate
[Lender Name]
[Lender Address]
[Lender City, State, Zip]
[Lender Phone Number]
[Lender Email Address]
Date: [Date]
To the Executor/Administrator of the Estate of [Deceased Borrower Name],
Subject: Release of Mortgage Lien - Property at [Property Address] - Estate of [Deceased Borrower Name]
This letter confirms that the mortgage loan, identified by loan number [Loan Number] , secured by the property located at [Property Address], [City, State, Zip Code] , and originally held by [Deceased Borrower Name] , has been satisfied.
The satisfaction of the mortgage has been completed either through the estate's payment of the outstanding balance or by other agreed-upon terms related to the estate settlement, effective as of [Date of Satisfaction] .
[Lender Name] hereby releases and forever discharges any and all claims, demands, and liens that we may have had against the property mentioned above as of the date of this release.
Please record this release in the public records of [County Name] County, [State] , to reflect the clear title of the property within the estate.
Sincerely,
_________________________
[Authorized Signer Name]
[Title]
[Lender Name]
State of [State]
County of [County]
On this ____ day of __________, 20__, before me, a Notary Public in and for said County and State, personally appeared [Authorized Signer Name] , known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same for the purposes therein contained.
WITNESS my hand and official seal.
_________________________
Notary Public
My Commission Expires: _________________________
Example: Release of Lien Due to Refinance (by Old Lender)
[Old Lender Name]
[Old Lender Address]
[Old Lender City, State, Zip]
[Old Lender Phone Number]
[Old Lender Email Address]
Date: [Date]
To Whom It May Concern,
Subject: Release of Mortgage Lien - Property at [Property Address] - Refinance Transaction
This letter serves as official confirmation that the mortgage lien previously held by [Old Lender Name] on the property located at [Property Address], [City, State, Zip Code] , associated with loan number [Old Loan Number] , has been fully satisfied and is hereby released.
The satisfaction of this mortgage occurred on [Date of Payoff/Satisfaction] , typically due to a refinance transaction where a new mortgage has been placed on the property by a new lender.
[Old Lender Name] hereby releases and forever discharges any and all claims, demands, and liens that we may have had against the property mentioned above as of the date of this release.
Please record this release in the public records of [County Name] County, [State] , to clear the title of the prior mortgage lien.
Sincerely,
_________________________
[Authorized Signer Name]
[Title]
[Old Lender Name]
State of [State]
County of [County]
On this ____ day of __________, 20__, before me, a Notary Public in and for said County and State, personally appeared [Authorized Signer Name] , known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same for the purposes therein contained.
WITNESS my hand and official seal.
_________________________
Notary Public
My Commission Expires: _________________________
So, whether you're selling your home, refinancing, or just want to ensure your property records are accurate, understanding your Mortgage Lien Release Letter Sample is key. Keep it safe with your important homeownership documents, and don't hesitate to contact your lender if you have any questions about receiving yours. It’s the final stamp of approval on your journey to homeownership freedom!