{"id":3957,"date":"2022-01-06T10:03:15","date_gmt":"2022-01-06T10:03:15","guid":{"rendered":"https:\/\/propertyonion.com\/education\/?p=3957"},"modified":"2026-03-17T19:41:09","modified_gmt":"2026-03-17T23:41:09","slug":"how-to-get-the-mortgage-payoff-amounts-on-your-foreclosure-auction-property","status":"publish","type":"post","link":"https:\/\/propertyonion.com\/education\/how-to-get-the-mortgage-payoff-amounts-on-your-foreclosure-auction-property\/","title":{"rendered":"How to Get the Mortgage Payoff Amounts on your Foreclosure Auction Property!"},"content":{"rendered":"<div style=\"background-color:#f4f4f4; border-left:4px solid #aaaaaa; border-radius:4px; padding:8px 14px; margin:0 0 24px 0; font-family:Arial, sans-serif; font-size:13px; color:#666666;\"><strong>Updated:<\/strong> March 16, 2026<\/div>\n\n<p>The information that I am about to share with you has sometimes increased my clients\u2019 bottom lines by hundreds of thousands of dollars <em>per property<\/em>. These were properties acquired at junior lien foreclosures, association foreclosures, and county lien foreclosures.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this Article:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/propertyonion.com\/education\/how-to-get-the-mortgage-payoff-amounts-on-your-foreclosure-auction-property\/#How_to_Research_the_Foreclosure_Auction_Mortgage_Payoff_Before_You_Bid\" >How to Research the Foreclosure Auction Mortgage Payoff Before You Bid<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/propertyonion.com\/education\/how-to-get-the-mortgage-payoff-amounts-on-your-foreclosure-auction-property\/#Requesting_Mortgage_Payoffs_Can_Be_Tricky_Business\" >Requesting Mortgage Payoffs Can Be Tricky Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/propertyonion.com\/education\/how-to-get-the-mortgage-payoff-amounts-on-your-foreclosure-auction-property\/#Why_Lenders_Hesitate_with_Mortgage_Payoffs\" >Why Lenders Hesitate with Mortgage Payoffs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/propertyonion.com\/education\/how-to-get-the-mortgage-payoff-amounts-on-your-foreclosure-auction-property\/#How_to_Handle_Mortgage_Payoffs_the_Right_Way\" >How to Handle Mortgage Payoffs the Right Way<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Research_the_Foreclosure_Auction_Mortgage_Payoff_Before_You_Bid\"><\/span>How to Research the Foreclosure Auction Mortgage Payoff Before You Bid<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>They all had one thing in common: there were one or more superior mortgages of record that would have to be paid off before they could close on a sale to their next buyer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Requesting_Mortgage_Payoffs_Can_Be_Tricky_Business\"><\/span>Requesting Mortgage Payoffs Can Be Tricky Business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There is reasonable anxiety that comes with the realization that you\u2019ll have to request a mortgage payoff from a superior mortgage lender to sell your purchase through a title company. This anxiety arises from several factors, which can appear as bumps, hills, or mountains depending on who you have to communicate with along the way.<\/p>\n\n\n\n<p>These factors include (but are not limited to):<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>You are not the borrower on the loan.<\/li><li>You do not know the borrower on the loan.<\/li><li>You do not have any of the personal information for the borrower (social security number, loan number, date of birth, etc.).<\/li><li>The borrower on the loan probably is not on friendly terms with you because you just bought their property at auction (a rather involuntary conveyance of title).<\/li><li>You do not know who is administering the loan.<\/li><li>You do not know where to request a payoff.<\/li><\/ol>\n\n\n\n<p>What differentiates these factors as creating bumps, hills, or mountains for investors? <strong>Time<\/strong>. I was president of a title company for about eight years and worked as in-house counsel for said title company for nearly a decade.<\/p>\n\n\n\n<p>Why am I sharing this personal anecdote? Being involved in over 6,000 closings, I knew what situations could quickly become deal killers. Investors not having the payoff in advance of the sale was, is, and will forever be a deal killer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Lenders_Hesitate_with_Mortgage_Payoffs\"><\/span>Why Lenders Hesitate with Mortgage Payoffs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Investors mistakenly assume that <a href=\"https:\/\/propertyonion.com\/education\/types-of-mortgages-explained\/\" target=\"_blank\">mortgage lenders<\/a> will happily provide payoff figures at the request of the title\/closing agent without borrower authorization. That assumption is a reasonable assumption. Why would a bank not want to get its money back from someone ready, willing, and able to pay them back?<\/p>\n\n\n\n<p>The Florida legislature understood that purchasing real estate is not limited to traditional arms-length transactions where Homeowner Harry sells to Benny Buyer, and Homeowner Harry has all his loan information readily available, signs a simple release for the title company, and gets a faxed payoff letter within a few days. <\/p>\n\n\n\n<p><strong>Banks do want to get paid back, so why not make it easy? They did, but only for the borrowers.<\/strong><\/p>\n\n\n\n<p>For non-traditional sales, the legislature created <a href=\"https:\/\/www.flsenate.gov\/Laws\/Statutes\/2018\/Chapter701\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Chapter 701 of the Florida Statutes (opens in a new tab)\">Chapter 701 of the Florida Statutes<\/a> to make it possible for parties other than the borrower to request a payoff. Lenders are required to send to the property owners, within 14 days of receiving a payoff request, an estoppel letter that states the amount owed on the loan with a per diem figure. The law requires title holders to send proof of ownership with the request, nothing more. Sounds great, right? Sure, if lenders complied with Florida law.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>The reality is that lenders are so terrified of being accused of, sued for, or fined for releasing private borrower information that they assume it means they are not allowed provide anything to non-borrowers. See for yourself.<\/p><\/blockquote>\n\n\n\n<p>Call a lender and ask for their payoff department. You won\u2019t get as much as a person until you have a loan number. If you happen to have the loan number, you still won\u2019t be given any account information. Faxes get sent into the void. Mailed requests end up discarded. <strong>Deals die waiting for the payoff that never comes.<\/strong><\/p>\n\n\n\n<p>Title companies won\u2019t insure a transaction where there are <a href=\"https:\/\/propertyonion.com\/education\/how-liens-work-how-to-profit-with-them\/\" target=\"_blank\">outstanding liens<\/a> on the property ,  that would be a costly and significant risk for any underwriter. Traditional buyers also can\u2019t purchase property stuck in this situation because their own lender will want to have a first position lien on the property as part of the purchase.<\/p>\n\n\n\n<p>The longer sales proceeds are tied up in the closing process, the longer it will be before an investor can put their money back to work.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Handle_Mortgage_Payoffs_the_Right_Way\"><\/span>How to Handle Mortgage Payoffs the Right Way<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Does this mean that you will forever be stuck with property that you cannot sell? No. <strong>But it means you must take timely action to get payoffs so that your reputation and your business account aren\u2019t in the red. <\/strong><\/p>\n\n\n\n<p>Following are steps you can take to ensure minimal disruption to your deals when superior loans need to be paid off.<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>As soon as you receive your deed, make a written request for the loan payoff.<\/li><li>Send this request via trackable mail\/courier services.<\/li><li>Wait for the 14-day period to pass for a response.<\/li><li>If your request is rejected, do not waste your time arguing with the lender.<\/li><li>Contact an experienced real estate attorney to help you get a payoff through litigation.<\/li><\/ol>\n\n\n\n<p>Having handled payoff requests and payoff litigation for over a decade, I do have encouraging information for investors. Upon receiving a summons for a lawsuit involving payoffs, most lenders respond quickly (within 30 to 45 days of being served) and will provide a payoff or a release of lien. The few that do not respond risk their liens being wiped out within the two-to-four-month-long payoff litigation process.<\/p>\n\n\n\n<p>By taking timely action in requesting payoffs, investors can help ensure that they are ready for a smooth closing. Additionally, they may receive the pleasant surprise of a release of lien from the mortgage lender or a judgment that eradicates the lien of a lender who refused to follow Florida law. In this business, who wouldn\u2019t appreciate this significant boost to their bottom line?<\/p>\n\n\n\n<p>Take charge of your real estate investments, act fast with payoff requests, do not waste your time arguing with the bank\u2019s staff, and, when necessary, bring that lender promptly to court. Time is money, after all.<\/p>\n\n<p>Knowing the foreclosure auction mortgage payoff amount before auction day is one of the most important pieces of research you can do. The foreclosure auction mortgage payoff figure sets the floor for how the proceeds will be distributed, and in many cases determines whether there is any equity left for you as a buyer.<\/p>\n<p>In a judicial foreclosure, the foreclosure auction mortgage payoff balance that triggered the lawsuit is published in the lis pendens and subsequent court filings. Tracking these documents through the county clerk records gives you reliable foreclosure auction mortgage payoff data well in advance of the sale.<\/p>\n<p>One important nuance in foreclosure auction mortgage payoff research is distinguishing between the original loan balance and the total judgment amount, which includes accrued interest, attorney fees, and court costs. The final foreclosure auction mortgage payoff judgment is typically higher than the original loan balance.<\/p>\n<p>Beyond the foreclosure auction mortgage payoff, you also need to understand what other liens may survive the sale. Our guide on <a href=\"https:\/\/propertyonion.com\/education\/florida-title-search-101-how-to-uncover-hidden-liens-encumbrances-and-red-flags-before-you-bid\/\" target=\"_blank\" rel=\"noopener\">florida title search<\/a> walks through how to identify all encumbrances before you bid.<\/p>\n<p>Understanding the full cost picture at <a href=\"https:\/\/propertyonion.com\/education\/understanding-foreclosure-auctions-in-florida\/\" target=\"_blank\" rel=\"noopener\">florida foreclosure auctions<\/a> helps you build accurate budgets and avoid overbidding on properties with thin margins.<\/p>\n<p>Once you have confirmed the foreclosure auction mortgage payoff and surviving lien picture, review our <a href=\"https:\/\/propertyonion.com\/education\/county-foreclosure-auction-how-to-bid-low-win-big\/\" target=\"_blank\" rel=\"noopener\">foreclosure auction bidding<\/a> guide to develop a smart strategy for the actual sale day.<\/p>\n<div style=\"background-color:#eef6fd; border-left:5px solid #1a73b8; border-radius:6px; padding:24px 28px; margin:32px 0; font-family:Georgia, serif;\">\n<p style=\"font-size:20px; font-weight:bold; color:#1a3a5c; margin:0 0 10px 0;\">Never Miss Another Florida Foreclosure or Tax Deed Sale<\/p>\n<p style=\"font-size:15px; color:#2c4a6e; margin:0 0 14px 0;\"><strong>PropertyOnion.com<\/strong> is the platform built specifically for Florida foreclosure and tax deed auction investors. Get complete auction listings for every county, powerful research tools, and a library of investor eBooks you can download and use immediately.<\/p>\n<a href=\"https:\/\/propertyonion.com\/?&#038;reference_member_id=wpposts45&#038;ref2=wpposts45\" target=\"_blank\" rel=\"noopener\" style=\"display:inline-block; background-color:#1a73b8; color:#ffffff; font-family:Arial, sans-serif; font-size:15px; font-weight:bold; padding:12px 24px; border-radius:4px; text-decoration:none;\">Join and Get Instant Access<\/a>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Updated: March 16, 2026 The information that I am about to share with you has sometimes increased my clients\u2019 bottom lines by hundreds of thousands of dollars per property. These were properties acquired at junior&hellip;<\/p>\n","protected":false},"author":11,"featured_media":3969,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[12,11,76,157,384,237,19,315,383],"class_list":["post-3957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-articles","tag-auction","tag-foreclosure","tag-legal","tag-legal-opinion","tag-lenders","tag-liens","tag-loan","tag-mortgages","tag-payoffs"],"_links":{"self":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/3957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/comments?post=3957"}],"version-history":[{"count":14,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/3957\/revisions"}],"predecessor-version":[{"id":13988,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/3957\/revisions\/13988"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media\/3969"}],"wp:attachment":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media?parent=3957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/categories?post=3957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/tags?post=3957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}