Payoff problem halts home sale

Law of the Land

Nancy Logan purchased a property from Deborah Graves in 2000, signing a promissory note under which Logan would pay Graves $35,000. Logan contracted with a third party to resell the property in 2006.

In preparation for the planned June 2006 close of escrow on the second transaction, the title company approached Graves and requested that Graves issue a payoff statement providing the amount of principal and interest still outstanding and due from Logan to satisfy the promissory note. Graves informed the title company that she was concerned, because she believed that Logan might have missed some payments under the loan, and did not provide a payoff figure prior to the planned close of escrow date.