what is a payoff demand and how long does it usually take to get one?

Answer 1

Payoff demand is the principal amount borrowed plus daily interest added. You can call the finance company to receive an immediate payoff quote calculated up to the payoff date, the time you agree to send the money to the company. Any overage is returned to you.

Answer 2

This is a statement that reflects the amount necessary to pay off your loan. It includes principal plus any old late fees, prepayment penalties, and/or payments the bank advanced on your behalf for homeowners insurance or taxes they paid because you didn't pay them. The interest is calculated on a daily basis, so when the loan is paid off, they usually include a day or two more because it is usually not received on the day you or the forwarding company, (escrow, usually), write the check. Any over payments are reimbursed. They have "cut off" times for receiving these payments, so figure in at least one extra day if it is being wired. In figuring interest, remember that a mortgage is not like rent which is paid in advance. Interest is paid in arrears. Your September payment pays for Sept. principal and August's interest. If payment is received on September 27th, then figure interest to that date. If an escrow company is doing the demand, they can usually get it by fax within a day or two of the request. You can get it by phone, but it won't be officially accepted by the person doing the actual payoff. It must come from the mortgage company. Most are pretty quick, but some are still slow, so ask your escrow officer for her experience with your lender. Don't forget, too, there will be fees involved. About $50.00 for the demand statement, perhaps some wire fees, and recording fees. In a Trust Deed State, there will be release fees as well. Not too bad, really. figure $100.00 total.

Answer 3

Go here: http://www.azleg.state.az.us/ars/33/00715.htm