How do I get a written payoff statement from my lender to review before closing? – North Carolina

Short Answer

In North Carolina, you (or your closing attorney/settlement agent) can request a written payoff statement from your mortgage servicer, and it should be provided within a reasonable time. Federal mortgage rules generally require servicers to send a payoff statement within seven business days of a written request, with limited exceptions. Your request should include your loan number, property address, the date you want the payoff good through, and your written authorization if someone else makes the request. If the lender delays, your attorney can escalate the request and document all contacts.

Understanding the Problem

In North Carolina real estate closings, you may need a written payoff statement to confirm exactly what your current mortgage will cost to pay off on the closing date. You want to know: how do you request it, who can request it, and when should you expect it before closing. Communication has been difficult, and you are struggling to obtain the written payoff ahead of closing.

Apply the Law

North Carolina treats mortgages and deeds of trust as secured interests that must be satisfied and cancelled of record after payoff. Practically, the borrower or the North Carolina settlement agent (often your closing attorney) requests a written payoff from the loan servicer. The payoff must be accurate for a specific “good-through” date and include per-diem interest, fees, and wire instructions. The main point of contact is the loan servicer’s payoff department; no court filing is required. Payoff letters are time-sensitive, so request early and update if your closing date shifts.

Key Requirements

• Proper requester: The borrower, record owner, or an authorized North Carolina closing attorney/settlement agent may request the payoff.
• Written authorization: If someone other than the borrower requests it, provide a signed borrower authorization naming the requester.
• Complete identifiers: Include loan number, property address, last four of SSN (if required by servicer), and the date you want the payoff good through.
• Delivery method: Send through the servicer’s designated payoff portal, secure email, or fax; keep transmission receipts.
• Required contents: The payoff statement should list total due, good-through date, per-diem interest, any fees, and precise remittance instructions.
• Time sensitivity: Payoff quotes expire quickly; if the closing date moves, request an updated statement before disbursement.

What the Statutes Say

• North Carolina Gen. Stat. Chapter 45 (Mortgages and Deeds of Trust) – Governs secured real estate loans and satisfaction/cancellation after payoff.
• North Carolina Gen. Stat. Chapter 45A (Good Funds Settlement Act) – Addresses settlement practices and disbursement of payoff funds at closing.
• 12 C.F.R. § 1026.36 (Mortgage servicing rules) – Generally requires servicers to provide payoff statements within seven business days of a written request, with limited exceptions.

Analysis

Apply the Rule to the Facts: Because communication has been difficult, submit a written payoff request directly to the servicer’s payoff department and authorize your North Carolina closing attorney to do the same. Include your loan number, property address, and the closing date so the payoff can be made “good through” that date, with per-diem interest. If the servicer does not respond promptly, your attorney can escalate in writing and document the delay; request an updated payoff if the closing date changes.

Process & Timing

1. Who files: Borrower or closing attorney/settlement agent. Where: Your loan servicer’s designated payoff department (secure portal, email, or fax). What: Written payoff request with borrower authorization; include loan number, property address, and requested good-through date. When: Send at least 7–10 days before closing; follow up within 2–3 business days if no response.
2. Servicer issues the payoff statement with total due, good-through date, per-diem, and wire instructions. Review it for accuracy (names, loan number, fees). If closing is delayed, request an updated payoff before funds are sent. Typical turnaround is within a week, but exceptions apply.
3. At closing, the settlement agent wires the payoff and obtains confirmation. After payoff, the deed of trust should be satisfied and cancelled in the county Register of Deeds; your attorney can monitor and follow up if it is not recorded timely.

Exceptions & Pitfalls

• HELOCs: Ask for both a payoff and written closure of the line to prevent future draws.
• Multiple liens: Confirm there are no junior liens; each lienholder requires a separate payoff.
• Authorization issues: Servicers will not release a payoff to a third party without a borrower-signed authorization.
• Funds and timing: Follow the servicer’s wire instructions exactly; consider wire cutoff times and weekends for per-diem interest.
• Name/loan mismatches: Ensure the payoff matches the correct loan number and borrower names to avoid a misapplied payment.
• Bankruptcy or loss mitigation: Special rules and timelines may apply; coordinate with your attorney if any such status exists.

Talk to a Real Estate Attorney

If you’re dealing with last‑minute closing issues and need a written payoff statement fast, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.