Q:

How do you write a payoff letter?

A:

Quick Answer

A payoff letter is usually written by the lender, or legal representative of the lender, after a formal request is made by the borrower. Loan industry experts reveal that payoff letters provide details of the exact amount of money to be paid, when it is to be paid and how to pay it. Lenders may provide the letter free of charge or charge a nominal fee for the service, notes About.com

 Know More

Full Answer

The payoff letter itself is simple and straightforward. However, the specific financial details of the loan are only accessible to the lender. Loan rates often fluctuate, which is why it is important to have the lender compile the final payment details in writing. The payoff letter reveals to the borrower the exact amount of money required to pay off the loan balance, according to legal advice site Nolo. This information includes the unpaid principle, interest and any related fees.

Payoff letters can be used to prevent a foreclosure sale. In this situation, the homeowner should request the letter at least five days before the desired payoff date. This gives the homeowner time to make the payment and stop foreclosure proceedings, explains Nolo. Although payoff letters may be requested by phone, if a legal record is needed, the request should be made in writing.

Learn more about Writing

Related Questions

  • Q:

    How do you write to your congressional representative?

    A:

    To write to a congressional representative, you must identify the appropriate member of congress to contact, confirm his desired method of communication, create a clear and concise letter and provide personal contact information for a reply.

    Full Answer >
    Filed Under:
  • Q:

    What is a mortgage commitment letter?

    A:

    A mortgage commitment letter is a statement from a lender to the borrower which confirms that the borrower has secured the loan and can now go ahead with closing, according to The Nest. The letter highlights the terms of the mortgage, as well as any conditions the borrower needs to meet prior to closing the loan.

    Full Answer >
    Filed Under:
  • Q:

    How do I write a letter requesting assistance?

    A:

    A letter requesting assistance should include an opening paragraph that provides an introduction to the letter writer and the specific request. The second paragraph should provide details about the request and reasons for the need, followed by a concluding paragraph that offers a call to action.

    Full Answer >
    Filed Under:
  • Q:

    How can you write a letter requesting funds?

    A:

    When writing a request letter for funding, it is important to research the company or potential donor so that you can better format the letter. Request letters should be no longer than one page, and they should be written clearly and concisely. The letter should also include a post script. It can take a couple of hours to create a well-crafted letter.

    Full Answer >
    Filed Under:

Explore