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Learn how to write a letter canceling a bank loan. For your loan cancellation letter, use our sample bank loan cancellation letters as a template.
Sample 1 - Bank Loan Cancellation Letter
Your Name
Your Address
City, State, Zip Code
DATE
Loan Officer’s Name
Bank’s Name
Bank’s Address
City, State, Zip Code
RE: Requesting cancellation of loan application number [NUMBER]
Dear [Loan Officer’s Name],
This letter is a formal request to cancel the loan application I submitted on [DATE] to [Bank’s Name]. On that date, I also provided the documentation you requested for loan approval.
When I called you on [DATE], I was told that I would forfeit my application fee and that there would be no cancellation cost. Despite your assurances that I will be notified of acceptance or rejection within two weeks after filing the application, I have yet to get any notification.
I made other loan applications to other lending institutions because I didn’t receive notice throughout the time you indicated. I’ve subsequently been approved for the loan I’m looking for, and I’d like to rescind the application I submitted to you.
I have completed and enclosed the paperwork you provided me with in order to request the cancellation of my loan application, and I request written notification that my loan application has been terminated. I also ask that you promptly return all of the paperwork I sent with my application so that I can submit them to the new lender.
Please contact me at [555-123-4567] or at [name@email.com] to tell me when I will receive my documents or give me a time when I can collect them from your office.
Thank you for your quick attention to this matter.
Sincerely,
Your Signature
Your Printed Name
List of enclosures: Cancellation Forms
Sample 2 - Bank Loan Cancellation Letter
Your Name
Your Address
City, State, Zip Code
DATE
Loan Officer’s Name
Bank’s Name
Bank’s Address
City, State, Zip Code
RE: Cancellation of my mortgage number [NUMBER]
Dear [Loan Officer’s Name]:
This letter is in response to our phone call on [DATE], during which I informed you that I wished to terminate my mortgage and provided you with a proper written notification. On [DATE], I applied for the loan and completed all of the necessary paperwork for approval and closure.
However, I’ve found a lender who will offer me a lower interest rate on the same amount of money that I’ll need for my mortgage. I’m informing you inside the 72-hour time period for closing, so I have the right to cancel.
Please cancel my mortgage application and return all of my documentation to me as soon as possible. I’ll be pleased to come to the bank and pick up the paperwork as soon as you let me know they’re ready. The credit check and appraisal expenses, I think, are refundable, but the application processing charge and rate lock-in fee may not.
If you notify me when I receive the paperwork, I will pay any cancellation fees. I’d like to request an official Mortgage Release document. If you have any questions, please contact me at [Phone Number] or [Email Address]. Please let me know when I can pick up my documents on or before [DATE].
Sincerely,
Your Signature
Your Printed Name
Frequently Asked Questions (FAQs)
1. What is a bank loan cancellation letter?
Answer: A bank loan cancellation letter is a written request to a lender to cancel a loan that has been approved or is in the process of being approved. This letter can be used to cancel a personal loan, business loan, or mortgage.
2. Why would someone need to write a loan cancellation letter?
Answer: There can be several reasons why someone would need to write a loan cancellation letter. Some common reasons include:
- The borrower has found a better loan option with more favorable terms
- The borrower no longer needs the loan
- The borrower has experienced a change in financial circumstances that makes it difficult to repay the loan
3. What information should be included in a loan cancellation letter?
Answer: A loan cancellation letter should include the following information:
- The borrower’s name and contact information
- The loan number and account information
- A clear statement of the borrower’s request to cancel the loan
- The reason for the cancellation
- Any relevant documentation, such as proof of a better loan offer or a change in financial circumstances
4. How should a loan cancellation letter be formatted?
Answer: A loan cancellation letter should be formatted as a formal business letter, with the borrower’s contact information, date, the lender’s contact information, and a professional salutation. It should be typed and be clear and concise.
5. What happens after a loan cancellation letter is sent?
Answer: After a loan cancellation letter is sent, the lender will review the request and may contact the borrower for additional information or clarification. If the loan has not been disbursed, the lender will typically cancel the loan without any further action.
If the loan has already been disbursed, the lender may require the borrower to repay the loan funds in full or in part. It is important to read the loan agreement and check with the lender for their specific policy and procedure regarding loan cancellation.