later than the target payoff date. The quote must be presented in writing — not verbally — and only to someone who has a recognized legal interest in the property. For this reason, anyone requesting a reinstatement or payoff quote must either be the borrower or provide the borrower’s written authorization. Payoff and reinstatement information is not public information. Request your payoff quote at least five business days before the expected payoff date. You must deliver the funds before the sale to stop the foreclosure. Any delay — even a bank-processing error — that prevents your account from being credited in time could result in you losing your home. The servicer is not allowed to present quotes either verbally or by phone. Ordinarily, federal law requires the servicer to send the payoff statement within seven business days of your request. This does not apply to a reverse mortgage or if your loan is in foreclosure or bankruptcy. Other exemptions include extraordinary circumstances — such as a natural disaster — and delays caused by your failure to follow reasonable requirements (for example, if you send your request to the correct email or postal address). In the event of any of these exceptions, the servicer is still obligated to provide your payoff statement within a “reasonable” amount of time.
DISPUTING THE PAYOFF AMOUNT
What happens if you spot what you believe to be an error on the reinstatement or payoff quote? You should contact the servicer, law firm, and/or trustee verbally and in writing to notify them of the amount in dispute. Send your servicer a “Notice of Error” letter, which 1) provides them with your name and information needed to identify your mortgage loan account, and 2) describes the error or inaccuracy.
If you claim the servicer did not provide an accurate payoff
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