Find Legal Topics > Real Estate Laws > Satisfaction of Loans and Liens

Satisfaction of Loans and Liens

Satisfaction of Loans and Liens During the closing process of a real estate transaction, it is vital that all loose ends are tied up. This is especially true when it comes to various financial considerations. At some point in these proceedings, all loans and liens must be paid and dealt with.

When striving toward the satisfaction of loans and liens, there are details that must be properly observed. These include: the amount and adequate date of payoff, the per diem interest charge if the closing occurs after that date, and thorough instructions as to the process of how the payment should be made. While in pursuit of the loan's satisfaction amount, it is wise to have already requested the seller to have provided their consent, as to the time when this information is needed, on their behalf, for the real estate transaction. It is required that you provide the lender with information such as the closing date, and a per diem interest charge, in the event that the sale closes on a date other than when was scheduled. 

Verification of loan payoffs are usually done by means of written correspondence, but can be done by phone if time is an issue. Regardless of what mode of communication you choose, a loan payment request form is required. If you do choose to go by means of telephone communication, however, precautions must be taken. When attaining a "telephone satisfaction amount," the name and number of the individual dispensing information to you must also be accounted for. 

Additionally, a letter may be conveyed from the firm to the lender, confirming the conversation occurred with the delivery of correct information. Following letters must be sent as well containing information connected to the payment of the check. In order to acquire satisfaction of liens, phoning the lawyer of the judgment creditor or lienor is necessary. You may find their information on the recorded lien or judgment. Such as is the case with satisfaction of loans, written information must be obtained. The amount required for satisfaction should be stated in a letter, for instance.

You may attain satisfaction information concerning federal and state tax liens by way of the Internal Revenue Service and the state department of revenue. As always, detailed information must be prepared when seeking out communication with government officials. These include information about the lien, such as its date, the taxpayer's name, location of recorded and filed lien, as well as the closing date and a per diem interest charge. If equipped with all of these significant details, you should have no issue acquiring the proper satisfaction of loans and liens.

Related Topics