How to Get a Mortgage Payoff Statement in Alabama

mortgage payoffFor some reason, a lot of mortgage companies nowadays seem to be forgetting to send their customers statements telling them just how much money they owe.  Knowing just how much you owe the bank on your home is a very important part of making a complete plan to get rid of your family’s debt forever.  So if the mortgage company won’t send you one, what do you do?

There are a few federal laws that address situations where a borrower alleges improper accounting of mortgage payments – a Qualified Written Requesut sent to the bank under Section 6 of RESPA can help you with that.  But what if you don’t want a long loan history?  What if you just want an accurate payoff statement?

Well, in Alabama, we have a special statute that requires a mortgage company to send you a complete payoff figure within 14 days of a written demand that contains the following information:

Section 35-10-91

Payoff statement; notice.

(a) A person liable for payment or performance of the obligation secured by the real property described in a security instrument who makes proper notice pursuant to this section shall be entitled to receive a payoff statement.

(b) Proper notice must contain all of the following:

(1) The entitled person’s name.

(2) If given by a person other than an entitled person, the name of the person giving the notification and a statement, if required by the secured party evidence, that the person is an authorized agent of the entitled person.

(3) The address to which the creditor must send the statement.

(4) The account number assigned by the secured creditor or other sufficient information to enable the creditor to identify the secured obligation and the real property encumbered by the security interest.

(5) If the secured obligation is an equity line, a statement that the entitled person requests the secured creditor to close the equity line upon receipt of full payment of the equity line on the payoff date specified in the notification and authorizes the secured creditor, at the secured creditor’s sole discretion and upon notification to the entitled person or to the entitled person’s authorized agent, to suspend the extension of any additional amounts under the equity line for a period of time prior to the payoff date as designated by the secured creditor. Any payoff statement on an equity line may qualify the payoff amount as being subject to change.

So for a traditional mortgage, all you need to do is send the bank your name, address, account number, and they have 14 days to send you a response. It need not be anything fancy – just a normal typed letter with the basic information. If they don’t respond, make sure you have the right address and try again. If they keep giving you the cold shoulder, it’s time to contact an attorney. Hope this helps!