A “Sample Letter To Payoff Balance On Promissory Note” is a written request. It asks the lender for the exact amount needed to fully pay off a loan. You might need this letter when you’re ready to settle your debt. This often happens when refinancing or selling an asset.
Need to write this letter? Don’t worry. We’ve got you covered.
This article provides sample letters. Use these samples as a guide. Make writing your own payoff request easy.
Sample Letter To Payoff Balance On Promissory Note
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Email]
[Your Phone Number]
[Date]
[Lender’s Name]
[Lender’s Address]
[Lender’s City, State, Zip Code]
**Subject: Payoff of Promissory Note – Account [Promissory Note Account Number]**
Dear [Lender’s Name],
This letter is to inform you of my intention to fully pay off the remaining balance on Promissory Note account number [Promissory Note Account Number].
I would appreciate it if you could provide me with a payoff statement that includes the following:
* The total amount due to fully satisfy the promissory note, including principal, interest, and any applicable fees.
* The date through which this payoff amount is valid.
* Instructions on how to remit the payment, including the payee name, address, and acceptable methods of payment (e.g., check, wire transfer).
Please send the payoff statement to [Your Email Address] or [Your Mailing Address].
I plan to make the payment on or before [Desired Payoff Date].
Thank you for your prompt attention to this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
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How to Write Letter To Payoff Balance On Promissory Note
Subject Line: Clarity is Paramount
- Make it succinct: “Promissory Note Payoff Balance Request – [Your Name] – [Note Number]”
- Avoid ambiguity. The recipient should instantly apprehend the letter’s purpose.
Salutation: Setting the Tone
- Use a formal salutation: “Dear [Lender’s Name],”
- If unsure of the name, opt for “Dear Sir/Madam,” but strive for specificity if possible.
Introduction: Getting to the Point
- State your intent directly: “I am writing to request the precise payoff balance for promissory note number [Note Number], which I intend to satisfy in full.”
- Reference the original note date to eschew any confusion.
Body Paragraph 1: Note Particulars
- Reiterate key details: the original principal amount, the date the note was executed, and the names of all parties involved—borrower and lender.
- Mention any partial payments made, if applicable, but emphasize your need for the *exact* payoff figure considering accrued interest and any applicable fees.
Body Paragraph 2: Payment Logistics
- Specify your desired method of payoff: e.g., wire transfer, certified check.
- Request detailed instructions for remitting the funds, including account numbers, routing numbers, or mailing addresses.
- Inquire about any prepayment penalties that might attenuate the final amount due.
Closing: Expressing Gratitude
- Express appreciation: “Thank you for your prompt attention to this matter.”
- Offer contact information: “Please feel free to contact me at [Your Phone Number] or [Your Email Address] if you require further clarification.”
Signature: Formal Validation
- Use a formal closing: “Sincerely,” or “Respectfully,”
- Include your typed name below your signature.
- Date the letter.
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Frequently Asked Questions: Sample Letter to Payoff Balance on Promissory Note
This section provides answers to common questions regarding the usage and purpose of a sample letter for paying off the balance on a promissory note.
Understanding these frequently asked questions can help ensure a smooth and documented payoff process.
What is the purpose of a payoff letter for a promissory note?
The purpose of a payoff letter is to formally request the exact amount needed to satisfy the remaining balance on a promissory note, including any accrued interest or fees, as of a specific date.
What information should a payoff letter include?
A payoff letter should include the borrower’s name, the lender’s name, the date of the promissory note, the loan or account number, the requested payoff date, and a request for the total payoff amount.
How should I send the payoff letter?
It is recommended to send the payoff letter via certified mail with return receipt requested to ensure proof of delivery. An electronic copy can also be sent for quicker communication, but should not replace the physical letter.
What should I do after sending the payoff letter and making the payment?
After sending the payoff letter and making the payment, retain copies of the letter, payment confirmation, and any correspondence with the lender for your records. Request a written confirmation from the lender that the promissory note has been satisfied.
What if there’s a discrepancy between the payoff amount I calculated and the amount the lender states?
If there is a discrepancy, immediately contact the lender to inquire about the difference. Request a detailed breakdown of how the payoff amount was calculated and compare it to your own records. Keep detailed notes of all communication.