Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started.The purpose of the letter is to describe why the borrower may not be able to make their mortgage, car loan, or other debt payments. 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. The purpose of the letter is to describe why the borrower may not be able to make their mortgage, car loan, or other debt payments. Many debt collection lawsuits are rife with errors, and you may not even owe the amount alleged in the lawsuit. See What is backup withholding? Don't live or work in our area? Ghafarinia or Principal of Apex Financial Solution: I am writing regarding certain advertising for your mortgage loan modification business.