Documentation Index
Fetch the complete documentation index at: https://docs.pylon.mortgage/llms.txt
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What 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.
- 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.
- 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.
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.