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.
Title: Oregon Letter for Tendering Final Payment and Obtain Release of Mortgaged Premises Introduction: An Oregon Letter Tendering Final Payment of Amount Due Pursuant to a Promissory Note Secured by a Mortgage is a formal communication sent by a borrower to a lender to provide the final payment required to fulfill the terms of a promissory note and obtain a release of the mortgaged premises. This letter is significant in concluding a mortgage transaction and facilitating the borrower's complete ownership of the property. Below, you will find a detailed description of this letter, its purpose, and its various types. Description: 1. Full Payment and Release Request: This type of letter is used when a borrower has made the final payment, satisfying the outstanding balance as per the promissory note's terms. The letter confirms that the payment has been made and respectfully requests the lender to issue a release of the mortgaged premises. This release serves as proof that the borrower has fulfilled their financial obligations and grants them unhindered ownership. 2. Escrow Closing and Release Request: Sometimes, the final payment is made through an escrow closing process, where all the funds required to satisfy the promissory note's terms are held by a neutral third party until certain conditions are met. In this case, the borrower writes to the lender, notifying them that the funds have been deposited with the escrow agent and requesting the release of the mortgaged premises upon confirmation of the funds' clearance. 3. Payoff Statement Clarification Request: Before making the final payment, a borrower might request a statement from the lender outlining the exact amount due, including any accrued interest, fees, or costs. If there are discrepancies or unclear details in the provided payoff statement, the borrower can use this letter to seek clarification, ensuring that the final payment is accurate and complete. 4. Conditional Release Agreement Request: In some cases, a lender might agree to release the mortgaged premises conditionally. This means that certain additional criteria, such as repairs, inspections, or the securing of alternative financing, need to be satisfied before the release can be granted. The borrower uses this letter to outline their fulfillment of the specific conditions and formally request the lender to proceed with the release of the mortgaged premises. Conclusion: An Oregon Letter Tendering Final Payment of Amount Due Pursuant to a Promissory Note Secured by a Mortgage is a crucial document in finalizing a mortgage transaction. It ensures that the borrower has fulfilled their obligations under the promissory note and allows them to obtain a release of the mortgaged premises, granting full ownership of the property. Depending on the circumstances, different types of letters can be used, including requests for full payment and release, escrow closing requests, clarification of payoff statements, and conditional release agreement requests.
