How can I ensure the lender provides a mortgage payoff statement in time for closing? – North Carolina

Short Answer

In North Carolina, the most reliable way to get a mortgage payoff statement on time is to send the lender a written payoff request that meets the requirements of state law and asks for a payoff date within 30 days. If the request is compliant, the lender generally must send the payoff statement within 10 days after the request becomes effective. Coordinating the request through the closing attorney (as the estate’s authorized agent) and confirming delivery method and payoff wiring/check instructions helps avoid last-minute closing delays.

Understanding the Problem

In a North Carolina probate sale, a personal representative (such as an executor) may need a mortgage payoff statement so the lien can be paid and released at closing. The key decision point is: can the estate (or the closing attorney as the estate’s authorized agent) make a legally compliant payoff request early enough that the lender’s response deadline runs before the scheduled closing date. Timing matters because the payoff figure is date-specific, and the lender often requires the payoff to be sent to a particular address, by a particular method, and with specific cutoff times.

Apply the Law

North Carolina has a statute that sets out who may request a payoff statement, what the request must include, and when the lender must respond. A proper request can be made by an “entitled person” or that person’s authorized agent, and it must identify the loan and property and specify a payoff date that is not more than 30 days after the request is given. If the request complies, the secured creditor generally must issue and send the payoff statement within 10 days after the request becomes effective, and the payoff statement must include enough detail to calculate the payoff through the requested date (including per diem interest and any cutoff time and payment address).

Key Requirements

Use the right requester (standing): The request should come from the estate’s personal representative or from the closing attorney clearly identified as the personal representative’s authorized agent.
Send a compliant written request: The request must include the required identifying information (who is requesting, where to send the statement, and enough details to identify the loan and the encumbered property) and must clearly state it is a payoff request.
Pick a payoff date within the statutory window: The request must specify a payoff date that is not more than 30 days after the request is given, and the lender’s statement should provide per diem interest and payment instructions so the payoff can be timed to closing.

What the Statutes Say

N.C. Gen. Stat. § 45-36.7 (Payoff statements; request, timing, and required content) – Allows an entitled person or authorized agent to request a payoff statement; requires specific request contents; generally requires the lender to send the payoff statement within 10 days; and lists what the payoff statement must include.
N.C. Gen. Stat. § 45-36.8 (Corrected payoff statements; effect of reliance) – Addresses what happens if the lender later corrects an understated payoff and how reliance on an understated payoff may be treated.

Analysis

Apply the Rule to the Facts: Here, the estate needs the payoff statement to pay the mortgage at closing, but the statement has not arrived. Under North Carolina law, the executor (or the closing attorney acting as the executor’s authorized agent) can send a compliant payoff request that specifies a payoff date tied to the scheduled closing (within 30 days of the request). If the request meets the statutory content requirements and is delivered in a way the lender treats as effective notice, the lender generally must send the payoff statement within 10 days, which creates a predictable timeline for closing.

Process & Timing

Who files: The personal representative (executor) or the closing attorney as the executor’s authorized agent. Where: Directly to the secured creditor (the mortgage lender/servicer) using the lender’s payoff request channel (often a payoff department fax, portal, or mailing address). What: A written payoff request that includes (1) the entitled person’s name, (2) the agent’s name and statement of authority if an agent sends it, (3) who should receive the statement, (4) the delivery address, (5) identifying loan and property information, (6) that it is a payoff request, and (7) a payoff date within 30 days. When: Send it as soon as a closing date is targeted; build in at least 10 days for the lender’s response plus extra time for delivery and any corrections.
Confirm receipt and delivery method: The closing attorney’s office should confirm the lender received the request, confirm where the payoff will be sent (email/fax/mail), and confirm whether the lender will charge a fee for expedited delivery. If the lender provides a payoff that is “good through” a date, confirm the per diem interest and the lender’s cutoff time so the settlement statement can be balanced.
Order updates right before closing: If closing moves or the payoff date changes, request an updated payoff amount during the lender’s normal business hours on the payoff date or the immediately preceding business day, and confirm the exact payoff remittance instructions (address, wire instructions if allowed, and reference numbers). Then the settlement agent disburses the payoff at closing using the lender’s stated method.

Exceptions & Pitfalls

Noncompliant requests: Missing items (like the payoff date, delivery address, or enough loan/property identifiers) can restart the process because the lender may treat the request as incomplete.
Wrong party requesting: In probate, lenders often require proof that the requester has authority (letters testamentary/letters of administration). Having the closing attorney request as “authorized agent” and attaching proof of authority can reduce back-and-forth.
Payoff date outside the 30-day window: A request that asks for a payoff date too far out may not meet the statute’s requirements. A better approach is to request a payoff date tied to the scheduled closing and then request an update if the closing date changes.
Delivery delays and “mail only” policies: Unless the loan documents require otherwise, the lender may only be required to send the payoff by first-class mail. If time is tight, confirm whether the lender will send by fax or email and whether it charges a reasonable fee for that method.
Executor logistics: When co-executors must sign on different schedules, the closing attorney should coordinate signing appointments early so the closing date does not slip and force a payoff update.
Closing workarounds that do not release the lien: Making a check payable to the estate instead of the lender typically does not satisfy the mortgage payoff requirement, and it can prevent a timely lien release. The payoff normally must be made to the secured creditor under its stated instructions.

Conclusion

To get a mortgage payoff statement in time for a North Carolina probate closing, the executor (or the closing attorney as the executor’s authorized agent) should send a written payoff request that includes the required identifying details and a payoff date within 30 days. If the request is compliant, the lender generally must send the payoff statement within 10 days and include per diem interest and payment instructions. The next step is to have the closing attorney send the compliant payoff request to the lender immediately so the 10-day response period runs before closing.

Talk to a Probate Attorney

If an estate sale is approaching closing and the lender has not provided a payoff statement, our firm’s attorneys can help coordinate the payoff request, confirm the executor’s authority, and keep the closing timeline on track. 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.