How to Get a Release From a Reverse Mortgage
A reverse mortgage is a financing option for seniors over the age of 62. Instead of the senior paying the mortgage payments to the lender, in a reverse mortgage situation the mortgage lender makes monthly payments to the homeowner. When the end of the reverse mortgage term is reached or the home is sold, a mortgage release is generated. If you need to obtain a release from a reverse mortgage, it's possible to obtain the form in a few easy steps.
Other People Are Reading
Instructions
-
-
1
Contact the reverse mortgage lender. When the last reverse mortgage payment is received or the home has been sold, contact the reverse mortgage lender to see when you should expect a copy of the mortgage release. You should receive a copy of the release, and a copy is also filed with the county clerk's office where the property is located.
-
2
Wait out the waiting period. Once you receive the release of mortgage letter, review the letter carefully to make sure that all of the information is correct. You can see a sample of a mortgage release in the Resources section.
-
-
3
Confirm filing with the county clerk's office. Once you receive the mortgage release, you'll also want to confirm that the release has been properly filed with the county clerk's office. The county clerk's office records the mortgage release in the public records so that the reverse mortgage lien is lifted from the property.
-
4
Retain a certified copy of the mortgage release. Keep the release on file in case any issues arise in the future. This document is proof that the lien is no longer on the property.
-
1
Tips & Warnings
The reverse mortgage lender has 90 days from the last mortgage payment or from the sale date of the home to send a mortgage release to you and to file it with the county clerk's office.
If the reverse mortgage lender does not send you a reverse mortgage release and/or file it with the county clerk's office within the 90 day period, then you can contact the banking regulatory agency for the state where the property is located to file a complaint.
If you receive a copy of the mortgage release but the county clerk's office does not, then file a copy of the release with the county clerk's office.
