Mortgage removal approval – This legal term is used in the sphere of Real Estate Law. It refers to an official statement, issued by a bank towards the borrower and any interested parties. With it, the bank states that if a certain amount of money is deposited and paid to the bank, it will remove the existing mortgage on the particular real estate. The role of such letter is to ensure all involved parties, that if the asked amount is paid to the bank, the property buyer will receive it free of mortgage. In other words – transferred without this legal burden. Usually, sellers of mortgaged apartments obtain from the bank such letter in cases where they negotiate lower amounts to be refunded in one go to the bank for reaching removal of the mortgage. Or even settling the debt towards the bank.
A synonym is “letter of engagement”.