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I am California, your experience may vary, but the jist should be the same
...
The mortgage is secured by the property -- as we already discussed. The
mechanism to create the security is the Trust Deed, or the Grant Deed.
(There is a subtle distinction between the two, and I'm not sure which is
which -- from this point I will simply use the term Deed to mean one or the
other.) The Deed currently lists the trustee (bank or lender) as the legal
owner. The concept here is much the same as the title on an automobile. The
auto itself is security for the loan, and the bank is noted as the lein
holder until the note is paid. Upon repayment of the note, the banks signs
off as lein holder and sends you the title. You take the title to the DMV to
get a new one that hasn't got the bank's name on it. (You do not need to do
this because the lein holder has signed off, which shows your ownership is
fully vested.)
In any case, your home is held in much the same manner. If you have the lein
release, then the next call would be to the county recorder to be sure they
have the same information, and they will know what you may need to get clear
title if the lein release does not automatically give it to you.
The main reason you want to be sure the bank isn't listed on title anymore
is that if you want to sell or refinance, you don't want the hassle of
getting the bank to sign off on a deal they are no part of anymore.
ON ANOTHER RELATED SUBJECT
Are you aware of a Home Equity Line of Credit that you can take out that is
in a 1st position (1st Trust Deed in my state) that will allow you to
leverage the equity in your home at some point in the future without having
to take out a new loan?
What happens is, you take out a loan that exposes your equity to you, but
you don't necessarily have to use it -- you can have a zero balance on an
equity line of credit. What happens is, you are driving in the country one
day with your significant other and see a property that interests you. You
buy the property with a check tied to the HELOC account attached to the home
you have already paid off. You don't have to sit in escrow waiting to be
approved for a new loan because you have the ready cash in hand.
Payments to this HELOC are done via deposits of your pay, or whatever source
you choose. Your paycheck buys down the balance from the moment it is
deposited, which effectively causes your paycheck to earn interest at
whatever your then-current mortgage interest is. As you go through the month
and pay bills -- utility and so forth -- you use the equity line checks to
do so. What happens here is, you transfer your effective income tax rate to
the day to day living expenses that you assign to the mortgage. Mortgage
interest is a deduction on taxes, utility bills and car payments are not.
So, if you pay the bills with checks that generate a small amount of
mortgage interest, then you get a tax deduction for the daily bills. See?
(Your tax guy can help you figure out if the strategy is sound ...)
But, the HELOC 1st allows you to shift daily living expenses to mortgage
expense, and it gives you instant access to the huge equity you have in your
house. (Perhaps your income is such that you don't need this kind of thing,
but since you managed to pay the house off then you have the
money-management profile that leads me to think you have high FICO scores
and can qualify for a product that unlocks your equity today so you can use
tomorrow in an instant.)
PS
I used to be a mortgage loan officer, which is how I know of the product. I
am no longer a loan officer so I cannot actually hook you up with the
product. I get nothing to tell you about this stuff ...
"Boomer" <boomeral@hotmail.com> wrote in message
news:X71lh.16184$_X.10678@bigfe9...
> First I thnank you for your detailed reply, Jeff. I was thinking along the
> same line. I paid the loan off about six months ago; after calling and
> getting a run around from department to department, today I received a
> recorded copy of satisfaction of mortgage. When I called the lien release
> department, there answer was that this is all I'm going to get. I don't
> need anything else. I'm not sure who to contact and how get my hands on
> the deed.
>
> Thanks,
>
> Boomer
>
> "Jeff Strickland" <crwlr@yahoo.com> wrote in message
> news:eqidnWY1xKsm9wnYnZ2dnUVZ_qK3nZ2d@ez2.net...
>> You should be looking for a reconveyance of the Trust Deed or Grant Deed.
>> (I pretty sure it's the grant deed.)
>>
>> In any case, the trustee holds the deed today. You paid the mortgage off,
>> and the trustor conveys the property to you with the reconveyance. What
>> happens is, you use the property as security for the loan. Should you
>> have defaulted on the loan, the bank (through the trustee) exercises its
>> ownership rights through the Deed, and in the process evicts you through
>> foreclosure proceedings. In any case, this scenario never kicked in, and
>> now that you have paid the loan, the trustee should relinquish its
>> position in the ownership chain. It does this by reconveying the deed to
>> you.
>>
>> Call the bank's (lender's) Customer Service department and ask them how
>> long they take to reconvey the deed. I would go ahead and wait until after
>> the New Year.
>>
>>
>>
>>
>> "Boomer" <boomeral@hotmail.com> wrote in message
>> news:ZyVkh.15725$cB6.4311@bignews7.bellsouth.net...
>>> Hello folks,
>>>
>>> I paid my mortgage off about six months ago. I'm expecting some
>>> documents be returned to me, but I've not received any. What documents
>>> should I expect to receive from the mortgage company?
>>>
>>> TIA
>>>
>>> Boomer.
>>>
>>
>
>
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Re: Paid off mortgage.
