Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started.1) Call the mortgage department and request an official principal payoff letter. This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,. Create a Loan Payoff Letter online and download it as a PDF or Word document. Customize and print a blank Loan Payoff Letter for free. If you are planning to sell your HOA property, you must submit an HOA demand payoff letter. Here's an in-depth explanation of the entire process. Debt settlement is an agreement between a lender and a borrower, typically for a large, one-time payment toward an existing balance.