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Code Red: This Update Concerning Payoffs is a Must Read!

We all know, change is inevitable.  Recently, our title clearing department noticed a change when ordering payoff statements for closings.  Over the past year, we have seen an increase in the processing time payoff lenders require before sending us an official payoff demand statement. Payoff lenders, who would typically send us payoff letters in as quickly as an hour, started taking 24-48 hours. As the months went by, the timeline increased. Currently, some of the largest mortgage servicers have increased their turn time from approximately 5 business days to some taking as long as 20 days to process a payoff statement.

Along with that change, we have just recently been made aware that some payoff lenders will no longer fax or email the payoff statement to the title company (which has long been the standard); rather, they will now only mail the payoff to the borrower via USPS, or to the title company’s address, if the borrower provides them with that address.

We want to make you aware of the new urgency for sellers to return the signed payoff authorization form to us as quickly as possible. In an attempt to avoid delays in closings and knowing of these increased time frames, we will order a payoff statement as soon as we have the fully completed and signed authorization from your seller. Our title clearing department may be reaching out to you earlier in the process to get the needed payoff information. Our sales team can provide you with an authorization form that you can present with your listing package to be signed and provided to us with the initial title order. If you prefer not to have your seller’s confidential information, you can provide us with the payoff authorization with nothing more than your sellers’ names, signatures and dates, and we will call them directly to obtain their account number and other confidential identifying information. As an additional option, if you would like to provide your seller’s contact information, we can also reach out to the sellers directly to obtain all the information and signatures we need. 

To help ensure your closing takes place on time and without delays, please provide your seller’s payoff information and authorization, or your seller’s contact information, AT THE ONSET OF THE TRANSACTION. Abstract & Title’s goal is to provide a smooth & seamless closing. With our combined efforts, we can cross the closing finish line in record time, and with a smile on everyone’s face. Thank you for choosing us as part of your team!!! We appreciate you every day!!! 

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