Relates to the discharge of a mortgage

Homeowners get protection for mortgage payoff payments

In New York, mortgage companies must accept payments that follow a payoff letter’s terms, including payment location and method. They cannot reject, return, or destroy a payment just because it falls short of the full amount owed. They may refuse and return it only when a defect prevents them from reasonably identifying the mortgage. Accepted payments must go toward the principal, interest, and other amounts owed. A partial payment does not clear the mortgage or entitle you to discharge papers; all amounts owed must be paid. These rules start with the referenced 2025 mortgage-discharge law, on the 180th day after that law becomes law.