Aside from “reinstatement,” another option available for homeowners in Iowa to avoid foreclosure is through a process of something called a “payoff,” in which debtors settle the total of their loan balance at once.
Homeowners who have decided to pay off their loan should request a quote, sometimes called a “payoff letter” or a “payoff statement,” from their lender that states the total amount of debt they need to pay. Aside from the amount breakdown, important information like dates, accrued interest, fees, and payment instructions should also be included in the payoff letter. Homeowners should take note that the amount in their monthly mortgage payment is not the total amount they need to settle for a payoff. When paying off the loan, homeowners should understand that they need to pay the exact figure given in the payoff letter in order to avoid payment rejection and continuing of the foreclosure procedure.
The lawyers of Hong Law, PLC in Iowa represent homeowners who are dealing with the threat of foreclosure. To discuss your legal options, call us today at (319) 294-5853.
Coralville, IA 52241
Phone: (319) 354-1804
Map to our Coralville Office