You know how many times we repeat the same words to every pilot every time, this is very important in real estate, to say, in conversation, the same thing to everyone in certain circumstances, it means that if there is any misunderstanding you can repeat exactly what you said to jog any memory or impress any judge that what you said is consistent.I also used modified flight strips keeping track of loan status through processing and transactions. 

Did I misunderstand what he's saying?

For most sellers and buyers it is a high dollar, emotional transaction that they do only a few times in a life time; and a simple mistake or misunderstanding in the process can become a large liability.

I have heard some of that misunderstanding before.To clean up some of your jargon:Mortgagee = LenderMortgagor = BorrowerYou are the Mortgagee when you buy a loan.  

As for @jay , I think maybe I was misunderstanding his intention.

I'm willing to bet that closing cleared that nightmare right up or will clear that misunderstanding up!"

That said, if you have the "disregard if... " on your future mailings, then the awkwardness part is moot because when you ask, with the intent of receiving confirming the status, and they acknowledge that it is, then you can simply apologize for the misunderstanding, gently point out that your mailing had a note about listed properties and so having received the call, you naturally assumed that the property was not listed.  

Please forgive me if I'm misunderstanding how this works.

Is this a good use of hard money, or am I fundamentally misunderstanding something?

This prevents misunderstandings, inspections, condition, any additional down payment, financing concerns, who pays title work, etc.