> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pylon.mortgage/llms.txt
> Use this file to discover all available pages before exploring further.

# Installment Loan Payoff Demand

> Provide a payoff statement for an installment loan being paid off at or before closing to confirm post-closing liability status.

## What this task is

This task collects a **payoff demand or current payoff statement** for an **installment loan** (secured or unsecured) that the borrower plans to **pay off in connection with the new mortgage**.
The payoff statement shows:

* The **total amount required to satisfy the loan**, and
* Any **fees or interest** included in that payoff.

## When this task is required

This task is required when:

* An installment liability is marked to be **paid off at or before closing**, and
* The lender intends to **remove the associated payment** from the borrower’s qualifying [DTI](/entity-models/key-concepts/dti) after payoff.

Installment loans may include:

* **Auto loans**,
* **Personal loans**, or
* Other **fixed-term debts**.

## Why this task is required

Underwriters and closing teams need precise information to:

* Ensure the **correct payoff amount** is funded and applied, and
* Confirm that the liability will be **fully satisfied**, not left with a residual balance.

This documentation:

* Supports accurate calculation of **cash to close and net proceeds**, and
* Justifies the **removal of the debt from post-closing [DTI](/entity-models/key-concepts/dti)**.

Without it, the lender may be forced to **continue including the full payment** in the borrower’s obligations, which can impact qualification.

## Documents needed to resolve this task

To satisfy this task, provide:

* A **formal payoff statement** or **current payoff quote** from the installment loan servicer:
  * Showing the **loan number, borrower name, payoff amount**, and **good-through date**.
  * Including any **per diem interest or fees** that might affect the final payoff.
* If the payoff has already been made, also provide:
  * **Proof of the payment transaction** and, when available, a **statement showing the updated or zero balance**.

These documents allow the underwriter and closing team to ensure the **installment debt is fully resolved** for post-closing qualification purposes.