What is a payoff statement?

A payoff statement, or a payoff demand, is a document provided by a lender that outlines the exact amount of money needed to completely pay off the outstanding balance of the loan.

Why does Point require a payoff statement from me?

Most payoffs include interest, which may be calculated on a daily, weekly, or monthly basis, and additional fees.
Point requires a payoff statement to verify the correct outstanding balance on the loan, including any fees and charges that may apply.
When you pay off the loan, Point requires a payoff statement to verify the total amount owed, including any accrued interest and other fees and charges to officially close out the loan and release any liens that are on the property.
On occasion, Point may also request a payoff for information, even if we will not pay off the debt. For example, if we need more information about your mortgage, we may request a payoff statement for it, even though we will not be paying it off.

How does Point determine what payoff statements are needed from me?

Point requests payoff statements based on any liens we discover on your home using public records, title search, or information from your application. Point also orders a preliminary title report as part of the underwriting process, which provides more information about any liens or judgments attached to your property.
To clear all of these liens or judgments, we may require a payoff statement to settle the debt and release the lien at the closing of your Point HEI. We require a clean title report to finalize your investment.

What happens if I cannot provide this document to Point?

Point cannot move forward with your Home Equity Investment application.

How can I obtain this payoff statement?

You may need to request a payoff statement from the IRS or local tax agency for unpaid taxes, your HOA for unpaid HOA fees, or your lender for any outstanding loans with them.

For Federal and State tax liens, you will have to contact them directly or go on their website. You may need to create login credentials to access your account online.
For your lender, contact their customer service or loan servicing department to obtain a payoff demand. They will guide you through the process and the necessary info you need.
For property taxes and liens, you may contact the assessor's office directly or go on the county assessor's website and search using the owner of record info or the APN number.
For HOA liens or past-due/delinquent assessments, contact the HOA directly to obtain a payoff demand.

What information does Point need to see on a payoff statement?

The payoff demand will need to reflect:

Date
Your Name
Loan Account Information
Judgment Reference Information (Case Number)
Property Name
Total Amount Owed (including interest and any additional fees)
Payment Instructions (Mailing address of lender or creditor)
Good Through Date

Payoff Dates

We prefer payoff dates that are good for 30 days. For good through dates that are less than 30 days, a per diem interest will ensure that we calculate the right amount to settle all outstanding payoffs.

If we are paying off your debt/lien at Closing, the payoff demand figures/exact amount owed must account for any accrued interest for this Good Through Date. The Payoff demand will need to be valid at the time of Closing, otherwise, it may cause delays or rejected if the final payment amount is incorrect as your total debt/lien will not be fully paid off.

Example of a payoff statement

Note: Your payoff statement will vary, depending on the lender and the type of loan or lien.