Documents for Paid-Off Mortgage?

[SarahW]

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.

 

[nanannjen]

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!

 

[W2R]

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.

 

[Nords]

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...

 

[uncledrz]

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.

 

[freebird5825]

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.

 

[Maurice]

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....

 

[Lakedog]

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.

 

[Maurice]

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.

 

[Maurice]

And Sarah - CONGRATULATIONS!

 

[Rambler]

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.

R

 

[Maurice]

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.

 

[mews]

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.

 

[DAYDREAMER]

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.

 

[ronin]

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.

 

[Khan]

If you were paying escrow, check with the insurance company and tax people to be sure of continuity of payments.

 

[W2R]

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.

 

[thefinancebuff]

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."
​

 

[Martha]

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.

 

[nanannjen]

Thank you for reminding me about the insurance - I had completely forgotten about that aspect. I will call them next week!

 

[Sparky]

We paid off our mortage in 2000, then sold the house in 2006. Apparently, there was no record of our satisfaction of mortgage, so we had to contact the original lender (good thing they were still around) and have them fax a letter to our attorney.

 

[Alan]

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.

CONGRATULATIONS - well done.

My experience was the same as W2TR and it was quite disappointing for me not to see the actual deeds of the house.

Now, a close friend of ours had a very nasty experience this year. She was browsing the section in the news paper that lists the names of the people who owe back taxes and was shocked to see her name as being delinquent for property taxes. She had owned 2 properties on the same street and when she sold one of them 2 years ago it turns out that her lawyers filed the wrong deeds so that she was recorded as owner of the house she had sold, and the house she lived in was now owned by the folks down the street

 

[Ronstar]

Congrats!

Where I live, the lender provides a "Release of Mortgage". You may have to ask your lender to give you a copy and record it in the proper county office (the Recorder of Deeds around here). It should be recorded so that any title search would show the property to be clear from the mortgage. If not, you'd have to go back and get this taken care of at a later date when you go to get a new loan, sell the property, etc. Its best to get the formal release asap before the lender loses the paperwork, changes personnel, or goes out of business.

 

[SarahW]

Thanks, everyone! I knew I could count on great responses. We are psyched about the payoff; 12 years into a 15-year mortgage. I wonder if any of you used GMAC mortgage? I've been reading a few horror stories about them which makes me a bit nervous, though we have never experienced any difficulty with 'em. Ack. Here's hoping the whole thing goes smoothly.

 

[ERD50]

We are psyched about the payoff; 12 years into a 15-year mortgage.

Oh, so this is an early pay-off?

From all the dancing, partying, congratulatory notes, I thought you were just happy to be able to achieve an "assets > liabilities" status (which *is* a milestone for many people, and a good reason to celebrate).

I'm not interested in debating the merits of an early pay-off versus "invest the liquidity" - you can search the forums or review the FAQs for that. But I am genuinely curious why so many people put on the party hat over what *is* a debatable financial transaction (based on how often is is inconclusively debated here).

So, congrats on having the financial wherewithal to be *able* to pre-pay the mortgage, that *is* an admirable achievement. But as far as deciding that that is what you want to do with that money, eh, six-'o one, half-dozen of the other. Whoopee.

For some reason unfathomable to me, this response may anger some forum members - but it is how I honestly feel, the math backs it up, I have no interest in simply annoying people (but I am curious), so there 'ya go.

-ERD50