Paying Off Mortgages

“Paid Off at Last” (by Lew Sichelman, Dec. 24), while informative, lacked critically important information helpful to borrowers who pay off their mortgages.

First, rarely, if ever, do secured lenders return the “paid” original promissory to the borrower. Most trustees, as a precondition to executing and recording the reconveyance, require that the original note be surrendered to them, not the borrower. It is the recording of the reconveyance that is critical to safeguarding the borrower’s rights, not the note.

Second, the California Legislature has gone to great lengths to protect borrowers who wish to pay off their mortgages. While a simple phone call to the lender would be nice, it would be far better for the borrower to take advantage of California Civil Code 2943 and request in writing a “payoff demand statement.” This statement gives the borrower all of the information (and more) needed to verify payoff amounts, and most importantly requires the lender to deliver it within 21 days or be subject to all damages suffered as a result of the lender’s failure to comply.

LOUIS LIPOFSKY

Los Angeles

The writer is an attorney.