The payoff demand processing fee is paid in escrow. Please see more information in the Payoff Demand Instructions.The lender must comply with any notice requirements in the loan documents. There is no statutory requirement for a pre-foreclosure demand letter. We have included some samples of foreclosure letters, as well as some examples of house loan foreclosure letter formats, to make things easier. In California, lenders can foreclose on deeds of trust using a non-judicial foreclosure process or a judicial foreclosure process. The lender must comply with any notice requirements in the loan documents. There is no statutory requirement for a pre-foreclosure demand letter. Learn how to write an effective hardship letter when facing short sale, foreclosure or loan modification. And the other Borrower Loan Documents and Funding Loan Documents, in the form and within the time periods required therein;. (c).