Real estate glossary
Payoff statement
Also called: Payoff demand, Loan payoff
The lender's statement of exactly how much it takes to pay off a loan in full on a given date.
Your mortgage balance is not the same as your payoff amount. Escrow requests a payoff statement (often called a payoff demand) from each lender, showing the principal, interest up to the payoff date and any fees.
Escrow pays this amount from your proceeds at closing, and the lien is then released on the public record (in California, by a recorded reconveyance).
What it means for you as a seller
Keep making your mortgage payments until closing unless escrow tells you otherwise; any overpayment is typically refunded by the lender afterwards.
Related terms
- LienA legal claim against a property for an unpaid debt, such as a mortgage, tax bill or unpaid contractor, usually paid off at closing.
- Seller closing costsThe fees and charges a seller pays at closing, such as commissions, escrow and title fees, transfer taxes and prorated bills.
- Settlement statementThe final itemized accounting of every charge and credit in the sale, showing how much the seller receives.
Not legal or tax advice. These explanations are general information to help you follow your own transaction. Laws, forms and customs vary by state and county, and the terms of your own contract always control. For advice about your situation, talk to your real estate agent, a real estate attorney or a tax professional. Last updated .