MORTGAGE LOAN PAYOFF PROCESS

2007-05-02 10:04:19

( Financial )



Borrowers who accumulate some money in large amount sometimes decide to make mortgage loan payoff to finally forgo with regular monthly mortgage payments and clean any third party claim with their houses. It is an advance full payment of mortgage obligation prior to its actual maturity.

The following are the processes involved in mortgage loan payoff.

1.Request a mortgage payoff statement from your lender. Make sure that your request is in written form. Review the mortgage payoff statement provided by your lender. It shows the total balance of your mortgage obligation that you want to fully pay.

2.Verify the balance stated in the mortgage loan payoff statement by requesting a history of your mortgage payment from the lender. The payment history must include first to the last mortgage amortization you paid. You should check the other fees charged on your mortgage payment which might not be accurate such as penalty for miss payments. Settle these issues with your lender before you arrange for a mortgage loan payoff.

3.Check for any escrow account set up by the lender for your mortgage in relation to payments for taxes and premiums on insurance. Any excess funds on this escrow account belong to you and your bank should return it to you prior to finalizing arrangement for mortgage loan payoff.

4.Cancel automatic payments you arranged with your bank in relation to your mortgage payment.

5.Send your final payment to your lender for the mortgage loan pay off. You should make personal payments if you have an individual lender to ensure that appropriate persons receive it.

6.Make sure that your lender provides you copies of promissory note and deed of trust from your lender. These two documents should bear the stamp paid and canceled to prove that you have fully paid your mortgage and complied with necessary requirements for its full payment.

7.Make sure that the lender releases the deed of trust from the records of land owners in your locality to prove that the lender is not the one owning your house anymore but you.


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