Reduction statement

Reduction statement – within the area of Financial Law, this legal term details a statement or certificate, issued by the lender of money (usually a bank institution), where officially detailed and confirmed the outstanding amount of money plus interest, i.e. – the whole amount due up to a present date by the borrower. In the conveyance procedures, where a property seller wants to sell a mortgaged apartment, they obtain a reduction statement by the bank, where detailed how much money is still owed to the bank. So the buyer can have the security that if they pay this sum to the bank, the mortgage will be removed. Somewhere called also “beneficiary statement’, “payoff certificate” or “statement of condition” – these all have the same meaning.

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