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. A payoff agreement is an informal contract in which a creditor agrees to accept the balance of a debt owed as full payment. Arrange for payoff of loans. The seller should advise its bank of the projected closing date and request a pay-off letter. Note: This form must be downloaded to your device in order to be filled out properly. It must be opened in Adobe Acrobat Reader.