Payoff Letter Question From Old Post
I am new to this site and was reading an older post from 02/02/04 titled "Sub2 closing costs". Nebulousd posted a comment from a closing cost question saying that a payoff letter from the lender is a good thing to get from the seller when buying subject to. Nebuloused said that this would make things easier when your buyer was ready to refi even though you had power of attorney from the seller. My question is: What good would a payoff letter be from the lender from the start since the payoff amount will change from princepal pay down on the loan before the new byuer refis. I hope I am making sense. Any ideas would be great.
Thanks[ Edited by baldi18 on Date 03/27/2004 ]
I agree, I don't see how it would help you out. Unless you needed it just to get the loan #, "owner" information, and any other relevent info about the loan. You could just as easily get that info if you had the POA. And you could get the info when it was time for your new buyer to refi.
Maybe PM nebd to ask him what this was in regards to. I've never seen him give out bad info, so maybe he had something else in mind/or had a different context to this topic.
just my 2 pennies
Sam
When you go to closing, you get several papers signed. One of these I get signed is a BLANK "Payoff Request Letter/Form" to send to the bank to get the actual "Payoff Letter". From the lenders I have talked to, most of them want you to fax a payoff request letter to them, indicating where to send the payoff letter to.
I get the sellers to sign a BLANK "Payoff Request Letter" (e.g. the date, where to send the payoff letter, all that stuff is blank). Then, when the buyer goes to refinance, I just fill in the blanks and then fax in the request form.
Yes you have a POA, yes you can sign for the sellers, yes yes yes. However, for me, since I'm already doing a closing and getting a bunch of documents signed, this is just one more I get signed because it makes things easier for me. When my buyer is ready to refi, we just set everything up, I fill in the blanks and fax away.
Sorry for the confusion.
I get it now. Just one less thing to get signed or sign later. Thanks for the clarification.
Baldi18