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Documents for Paid-Off Mortgage?
Old 06-05-2009, 11:01 PM   #1
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Documents for Paid-Off Mortgage?

We are preparing to pay off our mortgage. I'm wondering what type of documents we should expect from the mortgage lender and exactly what our responsibilities are? Thanks.
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Old 06-06-2009, 12:06 AM   #2
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I am curious about this also. When we paid off our vacation home, we got a courtesy letter from our lender, but nothing official. I finally went into the tax rolls and found that the proper paperwork had been filed there, but we never received anything official in the mail. Not sure if we should have or not!
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Old 06-06-2009, 12:21 AM   #3
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That is exactly what happened to me when I paid off my home. I specifically asked for copies of the release of lien, and didn't get it. I got a letter that the mortgage company said could be used in lieu of a release of lien. Kind of disappointing.

Oh, as far as your responsibilities - - my mortgage company said they filed the paperwork with the parish (=county in Louisiana). My responsibility was to call the mortgage company, get a quote faxed to me that was good for ten (I think?) days, and mail them a check immediately. Then they mailed me back a refund for the overpayment, along with the letter, and that was all.

CONGRATULATIONS!! Having a paid off mortgage is such a great feeling.
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Old 06-06-2009, 01:07 AM   #4
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We are preparing to pay off our mortgage. I'm wondering what type of documents we should expect from the mortgage lender and exactly what our responsibilities are? Thanks.
You'll get a letter stating that your mortgage is paid off, along with a statement showing a record of the payments. This is where you check to make sure they credited your payments correctly and that they're returning the excess of your escrow account (if applicable) to you.

In a few weeks to a few months you'll get the old mortgage in the mail with a stamp or cover letter showing that it's been recorded as having been paid off. Your lender might pay the recording fee or they might just let you know that you need to have it recorded (e.g., you get to do all the work and pay the fees).

When your mortgage is recorded as having been paid off, the lien is cleared. But it could take more weeks/months for all the appropriate databases to update.

You know that all the databases have been updated when you start getting junk mail solicitations offering to show you how to tap into your home equity...
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Old 06-06-2009, 05:40 AM   #5
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Not legal advice......you should have two things:
1. Note marked "paid in full"
2 Mortgage Discharge filed with the Clerk/Register.

Most companies do this automatically. If you haven't gotten both after 4 weeks, follow up with a call.
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Old 06-06-2009, 06:29 AM   #6
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Congratulations !
Nothing to add except a big party should be planned to celebrate.
Make a copy of the mortgage note, put it on the grill or outdoor fireplace and flick your Bic.
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Old 06-06-2009, 07:44 AM   #7
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You know that all the databases have been updated when you start getting junk mail solicitations offering to show you how to tap into your home equity...


Also you'll quit getting unsolicited offers to refinance your mortgage....
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Old 06-06-2009, 07:47 AM   #8
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Like most others have stated, I only received a letter from the mortgage company (had no escrow account). I later verified that it had been recorded properly. Since this was my first experience with a paid off house, I really did not know what to expect at the time either.
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Old 06-06-2009, 07:51 AM   #9
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I had the same experience last summer. I asked my lawyer what I needed to do. She said I may have to file the 'satisfaction of mortgage' document with the City if the mortgage servicer didn't.

It turns out that my mortgage serviced did.
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Old 06-06-2009, 07:52 AM   #10
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And Sarah - CONGRATULATIONS!
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Old 06-06-2009, 07:54 AM   #11
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Also you'll quit getting unsolicited offers to refinance your mortgage....
Well, not really. We still get them, 13 years after paying off our mortgage on house #1. We built house #2 without getting a mortgage, and we get refinance junk mail on that one as well. Both are properly documented.

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Old 06-06-2009, 08:21 AM   #12
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Yeah, now that I think about it NYC is a bit of a special case. Most people don't own their homes, so no mortgage originator would send blanket junk mail to everyone, rather they'd look up who actually has a mortgage.

In much of the country, its a saafe bet that most residents have a mortgage. So an originator could cost effectively target an entire zip code, and not bother with the expense of figuring out how has a mortgage and who doesn't.
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Old 06-06-2009, 10:20 AM   #13
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[quote=Maurice;822697]Yeah, now that I think about it NYC is a bit of a special case. Most people don't own their homes, so no mortgage originator would send blanket junk mail to everyone, rather they'd look up who actually has a mortgage.

quote]


It really annoys me, here in Brooklyn, to get the auto insurance offers. I don't have, never have had, a car.

spam


ta,
mew

oh, congratulations to the OP - It is a great feeling to actually own your place.
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Old 06-06-2009, 10:21 AM   #14
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One last thing you will want to do. Call your homeowners insurance and have the mortgage company removed as being the lien holder. It may be automatic, but i wanted to make sure if my house burned down, i get the money, not my old mortgage company.
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Old 06-06-2009, 10:38 AM   #15
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I asked our lender what they would send as far as verification and they said they don't send anything. I asked if they could send me something proving I paid it off. They said they would, but they didn't. They did notify the county records that the note was paid off, the county sent me notification of that action. So that's what apparently mattered. Kind of anti-climactic.
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Old 06-06-2009, 10:59 AM   #16
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If you were paying escrow, check with the insurance company and tax people to be sure of continuity of payments.
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Old 06-06-2009, 11:17 AM   #17
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If you were paying escrow, check with the insurance company and tax people to be sure of continuity of payments.
Oh, good point!! And even if you don't have escrow, you need to go have a talk with your insurance company so that if your home is destroyed by some disaster, they pay you instead of the mortgage company. Paying the mortgage company instead of the "home owner" was a universal practice after Katrina.
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Old 06-06-2009, 11:22 AM   #18
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This is the letter I got after a few weeks:
"KNOW ALL MEN BY THESE PRESENTS, that certain Deed of Trust described below provides that the holder of the Note secured by said Deed of Trust may appoint a successor Trustee to any Trustee thereunder appointed; and,

"WHEREAS, the indebtedness secured by the Deed of Trust, described below, has been paid and satisfied;

"NOW, THEREFORE, Mortgage Electronic Registration Systems, Inc., it's address being, [MERS address], being the present legal owner and holder of the indebtedness secured by said Deed of Trust, does hereby substitute and appoint [Loan Serving Bank], it's address being [Bank address], as successor Trustee, and the Trustee(s) under said Deed of Trust, having received from the Beneficiary under said Deed of Trust sufficient directive to reconvey, detailing that the obligation secured by said Deed of Trust has been fully paid and performed, does hereby reconvey unto the parties entitled thereto, but without any covenant or warranty, express or implied, all rights, title and interest which was heretofore acquired by said Trustee(s) under said Deed of Trust."
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Old 06-06-2009, 12:29 PM   #19
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Man, I can't believe that some forms still use the archaic language "know all men by these presents"

Like Uncledz said, you should get your note marked paid in full and a satisfaction or discharge of mortgage/deed of trust will be filed in the real estate records. Sometimes these things don't get done timely.
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Old 06-06-2009, 02:20 PM   #20
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Thank you for reminding me about the insurance - I had completely forgotten about that aspect. I will call them next week!
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