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. Title Insurance real estate forms archive containing over 300 forms in MS Word and Adobe acrobat format. 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 demand letter is an official notice requesting money, possession of assets, or action on a legal matter. Restated Agreement and incredible Plan. If in agreement, the payor can provide payment immediately. However, if the issue involves a small claims court, this could result in a settlement.