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. This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,. 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. The dealer must, within 7 days, notify the lien holder in writing that the vehicle has been traded in. Contact Discover® Personal Loans with any questions on personal loan basics, debt consolidation, or other personal loan topics. A statement that the lender will fund the loan in the event of VA approval.