Texas has a mortgage payoff statute – in most cases it is free!

11 Aug Texas has a mortgage payoff statute – in most cases it is free!

If you own a home in Texas and your mortgage company has charged you a fee to obtain a payoff statement – you may be owed a refund.

The statute is located in Chapter 83 of the Texas Administrative Code. It states if the borrower, spouse of a borrower, or a co-obligor (not a title company or a real estate agent) requests a pay-off statement to determine the amount it would take to pay the loan in full, the mortgage company shall provide the requested information free of charge and within a reasonable time. This statute applies even if the loan is in a delinquent status when the request is made. If the loan was made under specific sections of the Texas Finance Code, they must respond within either two (2) business days or seven (7) business days depending on which section the loan was made.

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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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