Can I change my mailing address with a lender during a real estate closing to stop mail interception? – North Carolina

Short Answer

Yes. In North Carolina, a seller may update mailing addresses with lenders and other creditors at any time, including during a pending closing. For the closing itself, the more important step is to have the closing attorney request payoff statements directly from each secured creditor and receive them electronically or by fax to avoid mail delays. North Carolina law requires secured creditors to provide payoff statements upon proper request, and closing funds are disbursed under the Good Funds Settlement Act.

Understanding the Problem

North Carolina real estate sellers often ask: can a home seller change a lender’s mailing address during a pending closing to prevent an estranged family member from intercepting lender mail needed for settlement scheduled mid-month? The concern is ensuring verified payoff figures arrive in time so the closing attorney can disburse funds and the sale proceeds can cover debts as planned.

Apply the Law

Under North Carolina law, sellers may update contact information with creditors at any point. For a deed of trust (mortgage) payoff, state law allows a borrower or the borrower’s authorized agent (commonly the closing attorney) to request a written payoff statement. The creditor must provide the payoff in a reasonable time and the statement will specify the amount due through a date and any daily interest. Closing funds must be collected and disbursed through the closing attorney’s trust account in compliance with the Good Funds Settlement Act. The main forum for coordination is the closing attorney’s office; recording occurs with the Register of Deeds.

Key Requirements

• Authorized payoff request: The borrower or the closing attorney (with written authorization) asks the secured creditor for a payoff statement that identifies the loan and a payoff date.
• Timely response and content: The secured creditor provides a payoff within a reasonable time, showing the total due through a specified date and any per diem.
• Secure delivery: Direct the creditor to send payoff statements electronically to the closing attorney to prevent mail delays or interception.
• Good funds disbursement: The closing attorney must have collected funds before disbursing to lienholders under the Good Funds Settlement Act.
• Post-payment satisfaction: After payoff, the creditor is responsible for marking the security instrument satisfied and the attorney coordinates recording with the Register of Deeds.

What the Statutes Say

• North Carolina Gen. Stat. § 45-36.7 (Request for payoff statement) – Allows borrower or authorized agent to request a mortgage payoff; creditor must respond within a reasonable time.
• North Carolina Gen. Stat. § 45-36.8 (Payoff statement) – Describes the content and effect of a payoff statement for satisfying a secured obligation.
• North Carolina Gen. Stat. § 45-93 (Good Funds Settlement Act) – Requires collected funds before an attorney disburses closing proceeds.

Analysis

Apply the Rule to the Facts: Because the seller is in North Carolina with closing mid-month and mail is being intercepted, changing mailing addresses with the mortgage lender and credit card issuer is permissible and prudent. More importantly, the closing attorney can, with written authorization, request and receive the mortgage payoff electronically under the statutes, bypassing mail delays. If the credit card debt is unsecured, a statutory mortgage-payoff rule may not apply, but the attorney can still disburse sale proceeds to that creditor at closing if there is a verified payoff letter or settlement in writing.

Process & Timing

1. Who files: Borrower or closing attorney (with written authorization). Where: The creditor’s payoff or lien release department; recording goes to the county Register of Deeds in North Carolina. What: Written payoff request including loan/account number, payoff date, and authorization to send to the closing attorney via secure email/fax; for unsecured debts, obtain a written settlement or payoff letter. When: Initiate at least several business days before the scheduled closing; monitor any payoff expiration date printed on the statement.
2. Creditor issues payoff; the closing attorney confirms per diem, wire instructions, and identity controls. If payoff expires or closing date slips, the attorney requests an updated payoff the same day funds will be disbursed.
3. After disbursement from the attorney trust account, the secured creditor processes satisfaction; the attorney coordinates recording so the deed of trust is marked satisfied in the Register of Deeds.

Exceptions & Pitfalls

• Unsecured debts (like most credit cards) are not covered by the mortgage payoff statute; response times vary, so get written terms early if paying from proceeds.
• Address changes do not affect notices already mailed; request electronic delivery to the closing attorney to avoid interception.
• Do not rely on verbal figures; use written payoff letters and verify wire instructions to prevent fraud.
• If a judgment has been recorded, it may have become a lien; that must be resolved before closing even if general credit card debt is otherwise unsecured.

Talk to a Real Estate Attorney

If you’re dealing with payoff delays or mail interception during a North Carolina home sale, 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.