If you’re looking for a quick and painless way to cancel an escrow account, look no further than this article. We’ve provided a template letter that you can use to get the process started. And the best part? You can easily edit it as needed to make sure it accurately reflects your unique situation.

Whether you’ve decided to pay your property taxes and insurance on your own, or you simply don’t want to deal with the added hassle of having your funds tied up in an escrow account, this template letter can help you take action quickly and easily.

So why wait any longer? Use our template letter to cancel your escrow account today and enjoy the freedom and flexibility that comes with managing your own property expenses.

The Best Structure for a Template Letter to Cancel Escrow Account

Cancelling an escrow account can be a bit tricky, especially if you don’t know the proper steps to follow. One of the first things you need to do when cancelling an escrow account is to send a letter to your mortgage lender requesting the cancellation. The letter you send to your lender is crucial, as it can determine whether or not the request to cancel is granted. That said, here is the best structure for a template letter to cancel your escrow account.

Paragraph 1: Opening

Briefly introduce yourself and provide your account number, mortgage lender and property address. Thank your lender for their services thus far and express your intent to cancel your escrow account. This paragraph should be cordial and professional to set the right tone for the rest of the letter.

Paragraph 2: Reason for cancellation

Explain why you want to cancel your escrow account. Some common reasons include wanting to manage property taxes and homeowner insurance on your own or to avoid having your mortgage payment fluctuate as a result of escrow account overages and shortages. Keep in mind that you don’t have to provide a reason, but it helps your lender to understand your request better.

Paragraph 3: State the details

Indicate how you want to cancel your escrow account in this paragraph. You can request to make a one-time payment to cover your outstanding balance or request for your loan payment to be adjusted to reflect the new terms without escrow. Be clear and specific in stating your request.

Paragraph 4: Provide a deadline

To ensure a smooth transition, provide a deadline for your request to be processed. This gives your lender enough time to make the necessary adjustments in your account. Don’t forget to thank them for their cooperation and patience during the transition.

Paragraph 5: Close the letter

Close your letter by providing your contact details and reiterating your appreciation to their assistance. You can direct them to contact you if they have any questions or concerns to avoid any misunderstanding.

A template letter to cancel escrow account with a good structure can make the process simpler and help you avoid errors. Use the above format and customize it according to your needs. Submit the letter to your mortgage lender via certified mail to ensure that it’s delivered and received.

Seven Sample Templates to Cancel Escrow Account

Cancel Escrow Account Due to Refinancing

Dear [Lender’s Name],

I am writing this letter to request the cancellation of my escrow account. I recently refinanced my home, and as per the new loan agreement, I will be responsible for handling my own property taxes and homeowners’ insurance payments.

Therefore, I kindly request that you cancel my escrow account and refund the remaining balance. Your prompt attention to this matter will be highly appreciated. If you require any additional information or documents from me to process this request, please let me know.

Thank you for your cooperation in this matter.

Sincerely,

[Your Name]

Cancel Escrow Account Due to Property Sale

Dear [Lender’s Name],

I am writing to request the cancellation of my escrow account as I have sold my property. As a result, I will no longer require an escrow account for property taxes or homeowner’s insurance. Please let me know how to proceed with the account’s closure and any other documentation that is required from me to complete the process.

Thank you for your assistance throughout my time as your customer. I appreciate your cooperation in this matter and hope to work with you again in the future.

Best regards,

[Your Name]

Cancel Escrow Account Due to Increased Property Taxes

Dear [Lender’s Name],

I am writing to request the cancellation of my escrow account due to the increased property taxes. I recently received notice that my property taxes have increased, and I would like to handle the payments myself. I understand that, as a result, my monthly mortgage payments will increase.

Please let me know what steps are required to close the escrow account, and any documents that I need to provide to you. In addition, could you please inform me of any additional amount I may owe due to the increase in my payments?

Thank you for your cooperation in this matter, and I look forward to hearing from you soon.

Best regards,

[Your Name]

Cancel Escrow Account Due to Change in Loan Servicer

Dear [Lender’s Name],

I am writing to request the cancellation of my escrow account due to the change in loan servicer. I recently received notice that my loan has been transferred to another servicer, and I would like you to close the escrow account with my current servicer and transfer my funds to the new servicer.

Please inform me of what documents or information is necessary for this process, and if there are any additional requirements needed from me. I am grateful for your cooperation and assistance in this matter.

Thank you for your prompt attention to this matter, and I look forward to hearing back from you soon.

Best regards,

[Your Name]

Cancel Escrow Account Due to Inaccurate Property Tax Assessment

Dear [Lender’s Name],

I am writing to request the cancellation of my escrow account due to an incorrect property tax assessment. The assessment does not reflect the accurate value of my property, and I believe that the payments made to the escrow account are now inadequate.

As a result, I would like to handle the payments of property taxes and homeowner’s insurance myself. Please let me know the process and requirements to close my escrow account as I move forward with the payment of my property taxes and homeowner’s insurance.

I appreciate your assistance and prompt attention in resolving this matter. Thank you for your help in this matter and I look forward to hearing from you soon.

Yours sincerely,

[Your Name]

Cancel Escrow Account Due to Payment-in-Full

Dear [Lender’s Name],

I am writing to request the cancellation of my escrow account due to my mortgage loan being paid in full. As a result, there is no further requirement for an escrow account, and I would like to request that it be closed, and any funds be refunded.

Please let me know the process of closing the account and the balance amount that may still be available in the account. Also, inform me of any other details or documents that you may require to proceed with this request.

Thank you for your prompt and efficient assistance in this matter over the years. I truly appreciate your prompt response and look forward to hearing back from you soon.

Sincerely,

[Your Name]

Cancel Escrow Account Due to a Need for Financial Management

Dear [Lender’s Name],

I am writing to request the cancellation of my escrow account due to a lack of financial management. I have recently realized that I would like to improve my personal management of my finances and would like to be responsible for my property taxes and homeowners’ insurance payments. I feel that by making these payments independently, I will have more control over my finances and have a better understanding of them.

Please inform me of the necessary steps required to close the account and the balance amount that remains in the account. Thank you for your prompt response, and I am grateful for your assistance over the years.

Best regards,

[Your Name]

Canceling an Escrow Account: Tips and Guidelines

If you’ve decided to cancel an escrow account, it’s important to do so carefully and thoughtfully. Here are some tips and guidelines to help you through the process.

• Check your contract: Before canceling your escrow account, go through your contract to see if there are any clauses or requirements related to cancellation. Make sure you understand the terms and consequences of canceling.
• Give a notice: Notify your lender of your intention to cancel the escrow account in writing. Make sure to include your loan number and contact information, and ask for a confirmation of receipt.
• Calculate costs: Canceling an escrow account may have costs associated with it, such as administrative fees or the requirement to pay for a new property appraisal. Make sure you know what these costs are and factor them into your decision.
• Arrange for payments: If you’re canceling your escrow account because you want to make your property tax and insurance payments yourself, make sure to set up a system for timely payments. You don’t want to risk late fees or penalties.
• Consider the risks: Without an escrow account, you’ll be responsible for making sure your property taxes and insurance are paid on time. If you miss a payment, you could face fines or even foreclosure. Assess your risk tolerance before canceling.
• Follow up: After sending your notice to the lender, make sure to follow up to ensure the escrow account has been canceled and that you’ve received any refunds or credits owed to you.

Cancelling an escrow account can be a complicated process, so it’s important to do your due diligence and think carefully about the implications. By following these tips and guidelines, you’ll be well on your way to making an informed decision and taking the necessary steps to cancel your escrow account.

FAQs About Canceling Your Escrow Account

What is an escrow account?

An escrow account is a savings account set up by your mortgage lender to pay for property taxes, insurance, and other expenses on your behalf. It is typically required when you have a mortgage with less than 20% down payment.

Why should I cancel my escrow account?

You may want to cancel your escrow account to have more control over your finances and to potentially save money by managing your own tax and insurance payments.

How do I cancel my escrow account?

You will need to send a written request to your mortgage servicer. You can use a template letter to cancel your escrow account and provide the necessary information.

What information should I include in the template letter?

You should include your loan number, property address, and specific request to cancel your escrow account. You may also need to provide supporting documents, such as proof of insurance or tax payments.

Will canceling my escrow account affect my mortgage payment?

Yes, canceling your escrow account may change your mortgage payment. You will be responsible for making your own tax and insurance payments, which can be a significant expense.

Are there any fees or penalties to cancel my escrow account?

There may be fees or penalties associated with canceling your escrow account, such as a processing fee or an increase in your interest rate. Check with your mortgage servicer to understand the specific terms and conditions of your loan.

How long does it take to cancel my escrow account?

The process to cancel your escrow account may take a few weeks to a month, depending on the requirements of your mortgage servicer. Be sure to follow up with your servicer to ensure the changes have been made to your account.

Say goodbye to Escrow: Use our Template Letter

We hope that this template has been helpful in cancelling your Escrow account without frustration. The process can be a headache, but with this letter, you won’t have to worry about drafting one from scratch. Remember to double-check the information to avoid any errors. Thanks for reading our article, and be sure to visit again later for more useful tips and tricks. Have a great day, and happy cancelling!