Skip to main contentWhat this task is
This task collects a mortgage payoff demand or current payoff statement for a mortgage that will be paid off before or at the closing of the new loan.
The payoff demand details:
- The exact amount required to satisfy the mortgage through a specific good-through date, and
- Any per diem interest, fees, or other charges that must be included in the payoff.
When this task is required
This task is required when:
- A mortgage liability is indicated as being paid off before or at closing, and
- The liability is considered a qualifying debt that will be removed from the borrower’s profile once paid.
Typical scenarios include:
- Refinancing where the existing first mortgage is being paid off.
- Paying off a second lien or junior mortgage in connection with a new first-lien loan.
- Paying off a mortgage on another property using sale or refinance proceeds.
Why this task is required
Lenders must ensure the payoff amount is:
- Accurate as of the closing date, and
- Sufficient to fully satisfy the lien so that it can be removed or subordinated.
The payoff demand:
- Allows closing agents to fund the correct amount to the servicer.
- Prevents short funding that could leave a residual balance or unreleased lien.
- Supports accurate calculation of cash to close and net proceeds.
Without a precise payoff demand, the lender and settlement agent risk funding errors, unresolved liens, and post-closing defects.
Documents needed to resolve this task
To satisfy this task, provide:
- A formal payoff demand or payoff statement from the current mortgage servicer that includes:
- The loan number and borrower name(s).
- The total payoff amount good through a specified date.
- Any per diem interest and instructions for calculating payoff for alternate dates.
- Remittance instructions for where and how payoff funds must be sent.
These documents allow the underwriter and closing team to ensure the mortgage is fully satisfied and properly accounted for in the new transaction. 
