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.comContinue Reading
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
Consumer Finance notes that a lender has approximately five business days to acknowledge a borrower's request, beginning on the date that the letter is received. After that, the lender generally has up to 30 business days to respond to the letter.Full Answer >
The purpose of a loan payoff letter is to bring the borrower up to date on the amount owed to the lender and the date of payment, notes Nolo. A borrower requests this letter from the lender when planning to pay off a loan to avoid foreclosure.Full Answer >
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 >
Format a letter to a congressman by crafting custom letters to local representatives, focusing the letter on a single main topic, addressing the representative respectfully and properly, and using specific examples throughout. Above all, avoid using profanity, vulgarity or issuing ultimatums, such as a demand the representative respond to the letter.Full Answer >