Escrow & Title
What is a 'beneficiary demand' or 'payoff demand' in a Hawaii escrow closing?
AA. The buyer's demand for a price reduction before closing
BB. A statement from the lender of the exact amount needed to pay off an existing loan, including accrued interest, fees, and prepayment penalties✓ Correct
CC. The seller's demand for net proceeds after commission
DD. A document from the title company verifying the buyer's funds
Explanation
A beneficiary demand (payoff demand) is a statement from the current lender specifying the exact amount needed to pay off the existing mortgage as of a specific date. It includes outstanding principal, accrued interest (calculated to the projected payoff date), prepayment penalties (if any), and fees. Escrow needs this to properly close out the seller's existing loan.
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