Paid off the mortgage last week

But I have a question. Papers just received from the mortgage company read, in part:

quote:

We will forward the satisfaction/release of mortgage to the courthouse for proper removal of lien. If requested at the time of payoff, we will forward to the Title Company or Attorney to handle the release process.

Uhm... "release process?"

Is there something else need be done here I missed?

Dont have any clue, but want to say congradulations!

Congrats! Wish I had your "problem". Maybe soon. Hopefully someone will come along with a good answer.

To release the lien they held against the title that’s on file with the appropriate recording agency.

Congratulations and welcome to the club.

Congratulations!

This message has been edited. Last edited by: Pyker,

I received a statement from the bank that held our mortgage and that was it. No papers or anything else from anyone.

Our bank never sold our loan so I don’t know if that’s the reason or not. Congratulations by the way, best feeling ever!

First, congratulations.

The process is at the state/local level and different depending on location. I will liken it to cars in PA which has a similar process.

The car title is held by the state and, when the car loan is paid off, the loan holder sends a notice to the state which releases the title and clears the lien. Sounds like a similar process in play in your location.

Some mortgages may have a "release of lien" fee to file the paperwork.

Expect your credit score to drop 25-50 points. You can fiddle with your available credit, credit utilization, and things like that to get the score back up over several months.

quote:

Title Company or Attorney

There could be an instance when others are handling mortgage payment, payment of taxes, etc. The mortgage company is telling you that any and all pertinent individuals and parties will be informed your mortgage is now unencumbered.

If I had a stellar credit score and an unencumbered property upon which tens of thousands of dollars could quickly and easily be borrowed, I'd not tell family. Certain individuals would be clamoring for a loan. Easier to leave them in ignorance than to say, "Piss off".

When you purchased your house, someone - and this is most always a title company - recorded your deed and a mortgage or deed of trust in your county land records. The mortgage or deed of trust is the document that secured the bank's interest. Now that you're paid up, the bank typically is required by statute to provide you with a recordable document showing that the loan is satisfied and that they no longer hold any secured interest in your property (often, this is a statutory requirement). The exact document varies according to jurisdiction, but you want that document recorded in your county land records. In most places, that release is sent by the lender or loan servicer to the county recorder's office for recording, and most folks are none the wiser.

The statement most likely relates to being paid off through a sale. Title companies want to have everything ready to go when they close.

quote:

Originally posted by P210:
To release the lien they held against the title that’s on file with the appropriate recording agency.

This. The mortgage company will (should) handle everything regarding the title.

The other issue you will face, is they will send you the remainder of what's in escrow for your insurance and property taxes, you will be responsible for paying both directly when they are due. I would check with your insurance company ASAP and see when the next payment is due.

Congratulations! My credit score dropped 75 points from 835-850 fico (for years) to about 775 for a couple of months when I paid off my last mortgage and have no other debt, then bounced up to about 830.

quote:

Originally posted by Woodman:
Expect your credit score to drop 25-50 points. You can fiddle with your available credit, credit utilization, and things like that to get the score back up over several months.

Why am I not surprised by this? Credit scores and credit rating agencies are scams.

Verify, at your Register of Deeds, that no one else has put a lien on your property. This is what the mortgage company is doing, or, in your case, releasing their lien on your property.

First: Thanks, y'all, for the congratulatory notes

From the other comments, and thanks, y'all, for those, too, it sounds like we have nothing further to do, since the mortgage company is notifying the courthouse that has the lien recorded.

quote:

Originally posted by jimmy123x:
... insurance and property taxes, you will be responsible for paying both directly when they are due. I would check with your insurance company ASAP and see when the next payment is due.

Yes, we know. Already done. But thanks for the heads up, anyway.

quote:

Originally posted by Woodman:
If I had a stellar credit score and an unencumbered property upon which tens of thousands of dollars could quickly and easily be borrowed, I'd not tell family. Certain individuals would be clamoring for a loan. Easier to leave them in ignorance than to say, "Piss off".

That won't be an issue in our case, but thanks for the warning

quote:

Originally posted by jimmy123x:
Congratulations! My credit score dropped 75 points from 835-850 ...

Ours dropped only 19 points.

quote:

Originally posted by HuskySig:
Why am I not surprised by this? Credit scores and credit rating agencies are scams.

Not really. Your credit rating is an estimation of your ability and willingness to pay on loans. If you had zero loan balances anywhere, thus were not making timely payments on any loans, how would anybody be able to determine if you were good at paying off loans?

Anyway, our credit rating is still stellar, so it's all good

Congratulations and Well Done!

My credit score took a hit as well, but I didn't really care b/c my whole purpose in paying off the mortgage was to move to a debt-free lifestyle.

congrats

I hope to be making this same post in about 7 years

To some extent your score will recover from the drop over time but the reality of it is, if you're over around 780 FICO you basically have access to the best programs, rates, etc available already. So dropping from an 850 to an 805 for example doesn't have much real world impact when your score is that high. Different financial institutions set their cutoff for super prime paper differently, but typically even 740+ gets you access to the most favorable terms.

quote:

Originally posted by HuskySig:

quote:

Originally posted by Woodman:
Expect your credit score to drop 25-50 points.

Why am I not surprised by this? Credit scores and credit rating agencies are scams.

They <evidently> use a first mortgage as a primary barometer of creditworthiness. This is the reason they give (even with a great credit score):

---

Lack of sufficient relevant first mortgage account information

The xyz credit score model relies on information in your credit files at the three national credit reporting companies (Equifax, Experian and TransUnion) to generate your score. Your credit file does not contain enough credit behavior information about your first mortgage accounts. A mix of different types of open and active credit accounts, including first mortgage loans, can have a positive impact on your credit score.

Congratulations, when is the mortgage burning party!