> ## 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.

# Mortgage Payoff Demand

> Provide a payoff demand or statement for a mortgage being paid off before or at closing to confirm the exact amount owed.

## 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.

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.