Estoppel Letter

Estoppel is a principle which precludes a person from changing facts which were implied in a previous agreement, statement or actions. When buying a note we draw up an Estoppel Letter agreement which states the facts of the sale such as interest rate, balance, term of loan, and other pertinent information associated with the mortgage loan we are buying. Our company has the note seller and the homeowner each sign matching letters with the same terms. This way everyone is on the same page. If a homeowner were to claim they paid additional principle or interest at a date before we bought the note or possibly claim an outside agreement existed, we can show that our purchase was based on the facts in which they stated previously. It doesn’t stop them from making a claim, but it can be used as evidence if you must litigate. I have never had to rely on an estoppel when the homeowner claimed there was a difference in balance, interest rate, or term after the purchase. But I still want it in the file.

You can use this as a guideline to write your own and make it work for you. This information should not be considered legal advice. Please seek legal counsel before using any of the information or examples of documents posted on our site. Every state has its own laws, rules and regulations, we are based in Texas and follow its guidelines. I hope you find this information helpful. If you are interested in selling a note we might be your buyer. Please feel to contact us and we will make you an offer.

maximum irs no tax due estate values

Ready to get started?