A mortgage payoff letter can come in two forms. The mortgage discharge or lien release is recorded.Receive a payoff letter. 2) Once you receive the principal payoff letter, write the check for the exact amount and in the memo, write: "Payoff" and the mortgage account number. It's a statement that breaks down the payoff figure for the loan assuming no intervening payments, on a future (specified) date. For institutional lenders, receiving a mortgage payoff after default or after a foreclosure action has been begun is welcome. Enter the amount that should have been withheld on Form 593, Real Estate Withholding Statement, line 34 and certify this is a cash poor transaction on Side 3. Request a Mortgage Payoff Statement. I thought we could just send in the last mortgage payment and we'd be all set. Nope! Statement, Form HUD-1) as points charged for the mortgage.