What You’ll Learn on This Page

  • What a loan payoff is

  • The difference between reinstatement quotes and full payoffs

  • Why payoffs are so important for foreclosure options

  • Common mistakes that cause delays

  • How to request a payoff the right way

Why Loan Payoffs Matter in Foreclosure

  • Loan payoffs are one of the most important things to request early.

  • Many foreclosure options require them

  • They take time to receive

  • Waiting too long can limit your options

What Is a Loan Payoff?

A loan payoff is a written amount from your lender showing how much money is owed as of a certain date.

  • It is not a guess

  • It is not a mortgage statement

  • It is not an estimate

  • It is not an estimate

Reinstatement Quote vs Full Payoff

Reinstatement Quote:

  • Shows the amount needed to catch up on missed payments

  • Brings loan current

  • Often used for loan modifications, repayment plans, refinancing options, buying time before auction

Full Payoff Quote:

  • Shows the amount needed to pay off the loan completely

  • Often needed for refinancing into a new loan, repayment plans, selling the home, short sales, some bankruptcy or settlement options

  • Many homeowners request only one and later realize they needed both.

Why Payoffs Are So Important

Payoffs are not just paperwork. They help you:

  • Know which options may actually work

  • Avoid guessing or bad advice

  • Move faster when time is limited

  • Without payoffs, many options cannot move forward.

How to Request a Payoff

Step 1: Contact Your Loan Servicer

  • Call the company you send your mortgage payments to.

  • Ask for: “The payoff or reinstatement department.”

  • Being transferred is normal.

Step 2: Ask for the Right Numbers

  • Be clear. You can say:

  • “I need a reinstatement quote.”

  • “I need a full payoff.”

  • If you’re unsure, request both.

Step 3: Ask for It in Writing

  • Always request payoffs by email or mail. Written payoffs are usually required for:

  • Refinancing

  • Loan modifications

  • Selling the home

  • Short sales

  • Verbal numbers are often not accepted.

Step 4: Ask How Long It Will Take

  • This matters more than people expect.

  • Most payoffs take multiple business days

  • Close to auction, delays are common

  • Foreclosure timelines keep moving.

Common Payoff Mistakes to Avoid

These mistakes are common and costly for homeowners:

  • Waiting until the last minute

  • Requesting only one type of payoff

  • Thinking you may not need a payoff

  • Relying on verbal numbers

  • Assuming statements are payoffs

  • Expecting the lender to rush

Want help?

Who is your mortgage lender?

Choose your Lender

ForeclosureRoadmap.com is operated by QuickDraw Home Solutions, LLC and is provided for educational and informational purposes only. We are not a law firm, attorney, lender, mortgage broker, real estate broker, or financial advisor, and we do not provide legal, financial, or tax advice. Information on this site is general in nature, may not apply to your situation, and should not be relied upon as professional advice. Options vary by state and individual circumstances. Results are not guaranteed.

© 2025 ForeclosureRoadmap.com. Operated by QuickDraw Home Solutions, LLC.

All rights reserved.