Can the Loan Servicer Refuse to Provide You with a Payoff Balance Statement within 7 Days?

Yes. In certain situations, the servicing company is allowed to provide you with the payoff balance statement within a "reasonable amount of time" that may extend beyond 7 days. Since there is no legal definition for the term “reasonable amount of time”, generally this term will be taken to mean no more than one month.

For your reference, the situations that allow a servicing company to take a "reasonable amount of time" to provide you with a payoff balance statement include:

  • When your loan is in bankruptcy or foreclosure

  • When your loan is a reverse mortgage

  • In the case of an Act of God or another natural disaster

  • When your servicing company has imposed certain reasonable requirements, such as requiring you to send the request to a specific mailing address, and you did not follow these requirements