Payoff requests, including borrower's authorization, should be directed to the servicer of the first mortgage. 1. Enter your personal information and amount owed.This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Do you need a loan payoff request form? Describe how you believe it can be fixed. Be specific and reasonable. (e.g. What is a Demand Letter? A demand letter is an official notice requesting money, possession of assets, or action on a legal matter.