In a Sale
What This Means When the House Is Being Sold
Requesting this early matters more on estate property than on an ordinary sale, since the borrower who could normally provide account access has died, and lenders often require additional documentation, such as certified Letters or a death certificate, before they will release payoff information to anyone else. Building extra lead time into the request avoids a scramble the week of closing.
Where a loan is a reverse mortgage, the payoff figure can be considerably more complex to calculate and confirm than an ordinary mortgage, and requesting it should happen as early as possible once a sale is being planned.
Compare
Not to Be Confused With
- This TermPayoff Demand
- Often Mistaken ForLien
- Often Mistaken ForReverse Mortgage
- Often Mistaken ForEscrow
What Tells Them Apart
A payoff demand is the specific document stating the amount owed on one loan or lien. Lien is the broader category of claim the payoff demand releases. Reverse mortgage is a loan type whose payoff figure is often more complex to obtain than an ordinary mortgage. Escrow is who requests the demand and who uses the figure to pay the debt at closing.
Questions
Questions People Ask
Why does it take longer to get a payoff demand on estate property?
Lenders often require proof of authority, such as certified Letters or a death certificate, before releasing payoff information to anyone other than the original borrower, who has died. Requesting the demand early in the escrow process, rather than waiting until closing approaches, avoids a delay when the figure is actually needed.