There are a few things we need to look at when examining a payoff letter that a lender has sent you. We need to make sure that the letter is in line with what we need before proceeding. Here is a copy of a recent letter we received. I'll add comments below the letter.
First, notice who the approved buyer is. That is absolutely the buyer that MUST close - no substitutions!
If you notice, the purchase price is 349k and the lender is getting a NET of 314k. this is accomplished by knowing how to get the lender to pay ALL costs, including a nice commission!
The letter states that should closing be postponed, the buyer will pay for per diem charges, foreclosure fees, etc. This is avoidable if you know how to approach it.
It also states the lender wants an approved HUD-1 at least 2 days before closing. We have a system in place to have the HUD created exactly right, every time so there is never an issue.
Finally, at the bottom it states that the loan will be reported to the credit bureaus as "account settled". How awesome is that for the homeowner??!!! We'll make sure to show this to them so they can feel relieved.
This business can be extremely lucrative, while at the same time you're helping out a family in need. Doesn't get much better...
This is a pretty simple letter. Some are much more complex and must be gone over with a fine tooth comb, otherwise you could find yourself in a world of hurt!
