With savings interest rates low, homeowners are sinking more money towards their mortgages. 

Benny Kass, columnist for Inman News details the steps you need to take after the mortgage is paid off.

"You must make sure that the deed of trust is formally released from land records. " says Kass, "This is accomplished by filing a release -- often called a "certificate of satisfaction" -- on those same land records."

Lenders handle this in different ways.  Some will arrange to have this done, for a small fee while others will just send you the original promissory note that you signed marked "paid and cancelled" and it's up to you to record it.

"If your lender is a private individual, make sure that you get the note back simultaneously when you make the final payment." says Kass.

Finally, follow these 3 steps to a free and clear title to your home:

1.      Notify your insurance carrier that you no longer have a mortgage.

2.      Advise the property tax authorities to send the bill to you.

3.      Stop any automatic payments for the mortgage.

Read the full story at Inman News.

photo credit: Horia Varlan

Posted in Headlines, Mortgage, Real Estate Investing, Real Estate Industry Trends

Comment from: houses for sale in omaha ne [Visitor] · http://www.luxuryhomesomaha.com/

It is a good post. The main question for every borrower that What to do after the Mortgage is paid Off. There are good 3 steps to a free and clear title to your home.

Permalink March 18, 2011 13:01:39

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