Fort Lauderdale Real Estate | Paying Off Your Mortgage
When you own a home without any strings attached, you know you have reached a financial milestone – an impressive one at that. It’s important to take steps to get your final payment credited as quickly as possible. Your mortgage lien should also be cleared from your title. When all is said and done, you will ensure that you can sell your home in the future without unpleasant issues. Keep in mind that your property taxes and homeowners insurance payments won’t come out of an escrow account anymore. Any bills that arrive will have to be handled by you.
When do you expect to get your last payment squared away? Roughly 30 to 60 days before that date, contact your loan servicer or lender. Ask them for a payoff quote. Don’t know how? Check your monthly statement for contact information.
According to Bill Pinkerton, a senior vice president at Wells Fargo Home Mortgage, many consumers miss their chance to make the payoff process simpler for Fort Lauderdale Real Estate. You might owe more than you anticipated because of the fact that you pay your mortgage in arrears. One month’s payment could cover the previous month’s interest and principal. While the loan is open, the interest grows on a daily basis. However, if you prepaid principal on occasion, you could owe less.
When you make a request, the loan servicer must get back to you with your payoff quote within seven days. The servicer will tell you the expiration date for the quote and when interest will again start to accumulate. Be aware that, on top of paying for your final month’s interest and principal, you will also pay a $25 to $50 fee. You have to pay this fee if you want to file a request to release the mortgage lien from your title with the real estate recording office in your county.
In addition, if your loan terms require it, you may also have to pay a prepayment penalty. Your servicer could ask for a cashier’s check or a wire transfer from your bank account for your final payment.
Many states require that a servicer file a release request within 30 days of payoff with the county recorder. Unfortunately, this doesn’t always happen. A California real estate lawyer named Paula E. Meyer sends a demand letter to the servicer using certified mail. It depends on the state, but this action can penalize the servicer.
Did your servicer use an escrow account to pay the bills for your property taxes and homeowners insurance? A refund check for the remaining balance must be sent within 20 days of payoff. The account should also be closed. You need to make contact with your tax department and insurers to confirm due dates and ensure you will receive any additional bills in the future. Make things easy by setting up automatic payments through your checking account or credit card.
You’re not out of the woods yet for your Fort Lauderdale Real Estate, even if you have a balance of zero in your account and a confirmation letter from the servicer arrived in the mail. Until the county records your release request, you won’t hold clear title to your property. The moment you receive a copy of the document, you’re done. You will either have to pick it up or wait for it to come to you through the postal service.
Your loan servicer might be listed as an “additional insured” in your insurance policy. This is done to protect its interest when it comes to your home. Don’t be afraid to ask the insurers to remove the servicer’s name. Be prepared to show them a copy of the recorded release request and the deed to your home.
Once the canceled mortgage note is in your hands, frame it on the wall and celebrate.
To buy or sell real estate anywhere in Broward County, please call Dale Palmer Group
at 954-895-8999 or contact-us today.
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