Escrow & Title
A Mississippi seller's deed of trust is being paid off at closing. The seller's lender issues a payoff statement good through July 31. Closing occurs August 5. The settlement agent should:
AUse the July 31 payoff figure
BRequest an updated payoff or calculate additional per diem interest from August 1 through August 5✓ Correct
CUse the original loan balance
DEstimate the additional interest and adjust at funding
Explanation
Payoff statements are valid only through a stated date. When closing occurs after the payoff good-through date, the settlement agent must either obtain an updated payoff or calculate the additional per diem interest (daily interest × number of extra days) to ensure the loan is fully paid off.
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