What Are the Prompt Payment Crediting and Payoff Statement Rules for Servicers?
The payoff amount refers to how much you actually need to pay to satisfy your remaining debt, including the principal, interest, and any other mortgage-related fees you still need to pay. According to federal laws, your servicing company is legally required to provide you with a payoff statement within 7 business days after receipt of a written request from you. Therefore, if you want to pay off your mortgage early, the first step you should follow is to send a written request to the servicing company asking for a payoff balance statement.
The payoff balance statement to be prepared by the servicing company should include the total payoff amount and the due date. Additionally, it must include detailed instructions on how to actually pay off that amount.
Please note that the total payoff balance and the outstanding balance in your monthly payment statement are not the same. If you are planning to fully pay off your mortgage, make sure you obtain the payoff statement first.
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