Sample Forms, Policies, and Contracts. Sample Form of Payoff Letter.How to fill out the Payoff Request Letter Templates? What is a Payoff Agreement? A payoff agreement is an informal contract in which a creditor agrees to accept the balance of a debt owed as full payment. In this post, I would like to discuss another method for clearing defects in title that can work just as effectively in certain circumstances. Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. 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.