Do you need a loan payoff request form? A payoff agreement is an informal contract in which a creditor agrees to accept the balance of a debt owed as full payment.Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. Our guide will teach you how to write a letter of explanation, plus offers a free template to help you write one of your own. A demand for payment may be requested for a real estate transaction, bulk sale, or liquor license. In each case, a demand for payment is a payoff request. A demand for payment may be requested for a real estate transaction, bulk sale, or liquor license. In each case, a demand for payment is a payoff request. A letter of explanation consists of short descriptions you can use to fill in the gaps in your paperwork for your underwriter.