Michigan Payoff Authorization is a legal document used by a lender to transfer a mortgage loan from one party to another. It is commonly used when a borrower refinances their home loan or sells the property. The document authorizes the lender to disburse the remaining balance of the loan to the new lender or to the borrower. It is signed by the borrower, the lender, and the title company. There are two types of Michigan Payoff Authorization: an original Payoff Authorization and a Partial Payoff Authorization. The original Payoff Authorization is used when the borrower pays off the full balance of the loan, while the Partial Payoff Authorization is used when the borrower pays off a portion of the loan balance.
Michigan Payoff Authorization
Instant download
Description
This form is the seller's payoff authorization advising the lender that the property has been sold and requesting a payoff.
Definition and meaning
The Michigan Payoff Authorization is a legal document that allows a borrower to authorize a lender to provide payoff figures for a loan associated with a specific property. This form is particularly useful when selling or refinancing a property, as it ensures that all parties are informed of the amount needed to pay off the existing mortgage or equity line.
How to complete a form
Completing the Michigan Payoff Authorization form involves providing accurate information regarding your loan and the property in question. Follow these steps:
- Fill out your lender's name, address, and contact information.
- Include the loan number associated with the mortgage you wish to pay off.
- Specify the property address linked to the loan.
- Indicate the type of payoff figures requested, including any relevant dates.
- Sign the form, providing your Social Security number for identification.
Who should use this form
This form is primarily designed for homeowners in Michigan who are in the process of selling their property or refinancing their mortgage. It's beneficial for those who need to obtain accurate payout information to settle their debts with lenders before transferring ownership or securing a new loan.
Key components of the form
The Michigan Payoff Authorization comprises several key sections:
- Lender Information: Details about the lender, including contact information.
- Loan Details: Information about the existing loan and property.
- Payoff Request: Specific requests for payoff figures and other information related to the loan.
- Seller's Signature: Confirmation by the borrower to authorize the lender.
Common mistakes to avoid when using this form
To ensure the Michigan Payoff Authorization is processed smoothly, it's crucial to avoid common pitfalls:
- Filling out the form incompletely or erroneously can result in delays or rejection.
- Neglecting to provide accurate contact details for the lender may lead to difficulties in obtaining payoff information.
- Failing to sign the document or provide necessary identification information can invalidate the form.
What documents you may need alongside this one
When submitting the Michigan Payoff Authorization, you may need to provide several supporting documents:
- Copy of the mortgage agreement to verify loan details.
- Identification documents, such as a driver's license or state ID.
- Purchase agreement for the property if applicable.
Benefits of using this form online
Utilizing the Michigan Payoff Authorization form online offers several advantages:
- Convenience of completing the form at any time from the comfort of your home.
- Immediate access to resources and guidance on how to fill out the form correctly.
- Ability to save and edit the document as needed before final submission.
How to fill out Michigan Payoff Authorization?
How much time and resources do you normally spend on drafting official documentation? There’s a greater option to get such forms than hiring legal experts or spending hours browsing the web for a proper template. US Legal Forms is the top online library that offers professionally drafted and verified state-specific legal documents for any purpose, like the Michigan Payoff Authorization.
To acquire and prepare a suitable Michigan Payoff Authorization template, follow these simple steps:
- Examine the form content to ensure it complies with your state requirements. To do so, check the form description or take advantage of the Preview option.
- If your legal template doesn’t meet your needs, find a different one using the search bar at the top of the page.
- If you are already registered with our service, log in and download the Michigan Payoff Authorization. If not, proceed to the next steps.
- Click Buy now once you find the right blank. Choose the subscription plan that suits you best to access our library’s full opportunities.
- Sign up for an account and pay for your subscription. You can make a transaction with your credit card or via PayPal - our service is totally safe for that.
- Download your Michigan Payoff Authorization on your device and fill it out on a printed-out hard copy or electronically.
Another advantage of our library is that you can access previously acquired documents that you securely store in your profile in the My Forms tab. Get them anytime and re-complete your paperwork as frequently as you need.
Save time and effort completing official paperwork with US Legal Forms, one of the most trustworthy web services. Join us now!
Form popularity
FAQ
The Michigan State Housing Development Authority (MSHDA) offers Down Payment Assistance (DPA) to specifically help repeat homebuyers purchase a home. The assistance is provided with a zero-interest, non-amortizing loan with no monthly payments.
To qualify, you must meet the following requirements: Complete Homebuyer Education classes. Have a minimum credit score of 640-660 (depending on the type of home). Meet household income limits based on area and household size.
Michigan First Home Down Payment Assistance One of the programs that MSHDA offers is the MI First Home Down Payment Assistance (DPA). The maximum DPA under this program is $7,500. This down payment assistance is a zero-interest, non-amortizing loan with no monthly payments.
MSHDA HHF (StepForward) LOAN SERVICING The balance of the loan may be fully forgiven and lien discharged after five years, if the borrower complies with the terms of the mortgage and note.
The Michigan State Housing Development Authority (MSHDA) offers Down Payment Assistance (DPA) to specifically help repeat homebuyers purchase a home. The assistance is provided with a zero-interest, non-amortizing loan with no monthly payments.
Since people often refer to a MSHDA loan as a first time home buyer grant, it's often mistaken as free money with no pay back requirement. That's not true. You will have to pay it back. For example, if you sell your home or refinance your mortgage, the down payment assistance will need to be paid back.
MSHDA Details: Michigan Down Payment loan: up to $10,000 Cash asset restriction of $20,000. Maximum home purchase price of $224,500. Income limits vary statewide from $64,100 to $123,620, total household income, determined by location and family size.
