Re: What needs to be on a payoff letter? - Posted by JPiper
Posted by JPiper on November 26, 2000 at 13:49:05:
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.