This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,.A mortgage payoff letter can come in two forms. One form tells borrowers the remaining principal amount and interest they have to pay to close out the loan. Subd. 3. Advance fee. Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started. Learn how the Minnesota foreclosure process works, including preforeclosure steps, foreclosure procedures, and homeowner rights. Complete and submit a payoff worksheet at least 30 days prior to the anticipated payoff date. Include a completed Request for Action (RFA) form.