What To Do When You Pay Your Mortgage Off
By Ryan Velez
However, after hitting this important step, there may still be issues ahead, one of which is your lender not releasing your mortgage lien when the mortgage is paid off.
Generally, the best lenders will take several steps once your mortgage is paid that you should be looking for. The first is to process your payoff amount, and show your account as paid in full. The second step is to report this fact to all the major credit reporting agencies. At this point, the lender should send you a final statement that indicates that your loan has been paid in full and that you have no statement balance. Along with this, you would get a check for any funds in escrow for your real estate taxes and/or insurance. If the mortgage itself is released, you would then have it filed or recorded at the local or county office that handles the filing or recording of real estate documents.
If these do not come to pass, don’t panic! The first step is to make sure the lender didn’t send the release for recording. Some are online, but you may need to get your property index number, or parcel identification number or tax parcel number to search the property records. If you determine that the release has been recorded, then you likely don’t have to do too much action, though ideally, getting the canceled documents would be possible. If the release is not recorded, and you do not have a statement from the bank showing that your loan balance is paid in full, the time has come to get in contact with the lender.
When you do so, make sure that you have your last statement. At that point, the lender will likely transfer you to the release department, and you will be asked for your release number and will confirm that things are paid in full. The duplicate release may either then be sent out to you or to a government office. If things do not progress, be sure to keep following up until you get the recorded or original document. You’ve done the hard work of paying it off, make sure you have the proof!