Sample Forms, Policies, and Contracts. Sample Form of Payoff Letter.Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. 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. This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,. In this post, I would like to discuss another method for clearing defects in title that can work just as effectively in certain circumstances. Paying off your mortgage early can save money in the long run.