Posted by dewCO on November 26, 2000 at 19:14:38:
Why don’t you have the title company contact him. Then when he responds you can check it over. Or you could just advise him you need the payoff by “X” date. Basically it just states how much is due on "XYZ"loan through a certain date. (Tell him what the closing date is.)
What needs to be on a payoff letter? - Posted by Tom Nagle PA
Posted by Tom Nagle PA on November 26, 2000 at 10:05:11:
Hi folks-
I have to get a payoff letter for a house that I am selling this week. The former owner holds the paper, and I need to get that out to him in AZ to sign. I have a lot of seller-held mortgages; this is the first one that I have to pay off. Thanks in advance-
Tom Nagle
www.tomnagle.com
Re: What needs to be on a payoff letter? - Posted by JPiper
Posted by JPiper on November 26, 2000 at 13:49:05:
Tom:
For notes that I hold I send a statement on my letterhead addressed to the party requesting payoff. I like to have a signed authorization to release information.
In the payoff letter I typically use two columns: one column is titled “If Payoff Occurs On”, the other column is titled “Pay This Amount”. Underneathe these columns I typically would have a 10 day spread in dates with the appropriate payoff balance for that particular date.
You could give the payoff for a particular date, and then include a daily interest proration so that the payoff may be adjusted. I don’t normally do this though to avoid any confusion.
At the bottom I note that the payoff figures do not reflect any payments received or charges that may occur during those particular periods.
I normally would fax this information to the party requesting.
JPiper
A few more details… - Posted by Tom Nagle PA
Posted by Tom Nagle PA on November 26, 2000 at 13:29:09:
I just don’t know what goes in the letter. I just talked to the mortgagor - he is happy that he is going to get paid off. I am assuming that the fellow holding the note is going to have to sign a paper saying what is owed to him through the closing date. Is that all a payoff letter is? Does it need to be notarized? Can I just email it to him and have him send it back to me? I’ll call my title agent tomorrow but I just wanted to get a jump on this today.
Thanks again,
Tom Nagle
Re: What needs to be on a payoff letter? - Posted by Jim LaVerdi (Phx_Az)
Posted by Jim LaVerdi (Phx_Az) on November 26, 2000 at 11:05:46:
Tom.
When you purchased the house that is the reason for getting that “Autorization To Release Private Information” signed. It would give your trustee of the trust (if a trust is what you’re using) the right to aquire this information for you. Without it you have to travel the rough road.
Make sure you get those documents signed in the beginning! It sure makes life a whole lot easier in the long run.
Jim LaVerdi (Phx_Az)