What it is: A loan payoff is the final payment amount required to completely pay off an existing mortgage or loan on a property. This isn’t just the principal balance; it includes any accrued interest, late fees, or other charges calculated up to a specific date.
What it reveals: The payoff statement reveals the precise amount needed to satisfy the existing loan and clear it from the property’s title. It confirms the exact balance, interest rate, and any fees, ensuring there is no remaining debt. This is crucial for a smooth transfer of ownership.
When it’s used: It is used just before a real estate transaction closes. The closing agent or title company requests a payoff statement from the current lender to ensure the existing loan is paid off in full from the proceeds of the sale or new loan. This guarantees the buyer receives a clear title, free of the previous owner’s mortgage.
Who Joins as a Vendor? This form is intended for Title Abstractors and Title Searchers, who operates as an independent contractor or a small business and wish to join our network. We are extending an invitation to join our network of professionals, as a verified vendor to handle title search orders and other related services.
