Estoppel Letter

TO: ________________________

____________________________

REGARDING: _________________

Property located at: _____________________________________________

The outstanding balance on this mortgage as of ___________ is $ ________ (_____________ & ___/100 dollars). The daily interest (per diem) is $_______ (_____________ & ___/100 dollars). The last mortgage payment was made on _________________.

These figures are valid and binding until _____________.

Please wire funds to the following account: ________________ (Account Name), ____________ Bank, _____________ (ABA Routing Number), _______________ (Account Number).

Kindly fax a copy of your wire confirmation to: ________________, Attention: ____________.

Dated: ______________________

For: _______________________________

Owner

By: _______________________________________

Lender

As: _________________________

_______________________

How to Use This Sample Format

This section is intended to help you understand and properly use this sample estoppel letter. An estoppel letter is typically used to confirm the mortgage payoff amount during the sale or closing of a property. Both private and institutional lenders issue these letters as standard procedure. They may also be applicable in corporate financing scenarios, particularly when acquirers or lenders are retiring existing debt.

If you are involved in such a financial or real estate transaction, this letter formalizes the communication process and ensures that escrow agents, attorneys, or any other professionals managing the transaction can proceed accurately and efficiently in disbursing funds.

Make multiple copies of the completed letter. Provide one to each party involved and retain one in the transaction file for your records.