How to Receive a Deed After Payoff
There may be no better feeling than owning your home free and clear. While the high of making the final mortgage payment can be intoxicating, attending to legal matters directly thereafter is crucial. Receiving the mortgage, or deed of trust, to your home is a must, though it may take some prompting to get your financial institution in gear. Following a few steps will ensure the title to your home is clear -- a necessity if you decide to sell later.
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Instructions
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Receive the satisfaction of mortgage or deed of trust (mortgage), which should be sent to you by your lender. If you do not receive the documents by mail, phone the lender and request it.
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File the satisfaction document with the county recorder. It may be that your lender will do this for you, but it is your responsibility to ensure the document is filed. Unless the satisfaction is recorded, the title company cannot verify you do indeed own the property free and clear. This can pose a problem or cause delays if you or your heirs ever decide to sell.
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Make sure to get the original document with date stamp from the recorder's office. If filing the satisfaction is up to you, the surest way to do this is to transport the document to the recorder's office yourself, have it stamped and take it with you when you leave. If your bank files the satisfaction, follow up with the bank and/or the recorder's office to be sure you end up with the date-stamped original.
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Tips & Warnings
Depending on where you live, the recorder's office may be located at the county courthouse or the register of deeds.
Attending to the above steps can help you avoid a nightmare scenario such as this one: You pay off the mortgage and do not take steps to retrieve the date-stamped original of the satisfaction document. Your lender then goes out of business. Some years later, you try to sell your house and find a potential buyer. The title company cannot verify that you own the property free and clear. The buyer's lender won't close on the house, as the title is clouded. The verification process takes so long your buyer loses interest and backs out. You are stuck in limbo, unable to sell your property and move on.
References
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