Anything I need to do b/4 making last house payment?

[Thrif-t]

The mortgage payment thread got me thinking, is there anything I need to worry about doing when I make my last house payment? Our payment and escrow is automatically deducted every month out of our checking account. Our last payment will be July 1, 2016. I'm assuming I'll need to contact my city tax department about taking over yearly tax payments, but anything else to do? Will they automatically send the house deed as the bank sends a car title once it's paid off?

I figure I don't have to worry about the auto deduct once the balance is paid off but I'm not sure if there are any steps I need to take? Anyone who's been thru this have any advice?

[QuarterMillionMan]

I don't know any answers to your questions but sounds like a good problem to have (lol).

[Jluke]

the last payment is unique.

You need to communicate a payoff date and they will tell you exactly how much you owe. You may also be charged a fee by your local tax recorder (or whatever they're called) that your bank will process for you. Mine was $77. Depending on the bank, they may want you to wire the money. I had the loan and last payment from my credit union so I just told them which savings account to deduct the money from.

If your loan and automatic payment are with the same bank, then it should disappear with the payoff. If the payment comes from another bank, then you want to confirm that gets cancelled.

You need to start doing your own escrow and ensure that the tax bill comes directly to you. Any escrow balance should be returned to you.

You need to tell the insurance company to remove the mortgage company from your home insurance policy.

You need to ensure that the deed is recorded.

You will receive a mortgage satisfaction letter from the lender showing a $0 balance.

I think that covers most of it. Hope that helps.

CONGRATULATIONS!

[disneysteve]

Jluke gave a great answer.

I just wanted to chime in and say CONGRATULATIONS!

[Thrif-t]

the last payment is unique.

You need to communicate a payoff date and they will tell you exactly how much you owe. Who do I tell? The mortgage company? Won't they just auto deduct the amount that's owed? Maybe I should call them. You may also be charged a fee by your local tax recorder (or whatever they're called) that your bank will process for you. Mine was $77. Depending on the bank, they may want you to wire the money. I had the loan and last payment from my credit union so I just told them which savings account to deduct the money from.

If your loan and automatic payment are with the same bank, then it should disappear with the payoff. If the payment comes from another bank, then you want to confirm that gets cancelled.Yep same bank so I guess I'm good.

You need to start doing your own escrow and ensure that the tax bill comes directly to you. Any escrow balance should be returned to you.A call to the county tax department I assume.

You need to tell the insurance company to remove the mortgage company from your home insurance policy.Great thanks!

You need to ensure that the deed is recorded.How do I do this? Who needs to be called?

You will receive a mortgage satisfaction letter from the lender showing a $0 balance.

I think that covers most of it. Hope that helps.

CONGRATULATIONS!

Thank you for the information!! I have a few questions in red above.

[Thrif-t]

Jluke gave a great answer.

I just wanted to chime in and say CONGRATULATIONS!

Thanks!! Kid #2 is off to college in the fall so this will definitely help to free up more cash should we need it. But I'm really looking forward to just banking more money....until kid #3 goes off in 3 more years

[disneysteve]

Thanks!! Kid #2 is off to college in the fall so this will definitely help to free up more cash should we need it.

The hope way back when was to have the mortgage paid off before DD went to college but life didn't work out that way. We've got $40,000 left and she just finished year 2. I'm starting a new job tomorrow and my plan is to use the extra money partly to pay for school and partly to accelerate the payoff of the house.

[Jluke]

Thank you for the information!! I have a few questions in red above.

Who do I tell? The mortgage company? Won't they just auto deduct the amount that's owed? Maybe I should call them.

Call/email the company that you make your loan payments to and tell them you want instructions on how to make your last mortgage payment. if you know the date of payoff tell them that too. if it happens automatically, great. But it's best to ask.

this website helped me http://www.nextavenue.org/8-key-mone...your-mortgage/

2nd bullet in link will help with the deed recording.

All of your other assumptions are correct: call the tax collector

[Jluke]

Xxxxxxxxxxx

[snafu]

CONGRATULATIONS Thrif-t in joining SA's every expanding group of participants who have reached the milestone of paid off mortgage. I suggest checking with your insurance agent as it meant a small reduction in premium here. I called and verified the Registrar had received all documentation and that the house had been correctly titled. When we received the papers they were added to important documents we retain in page protectors a binder in our home safe.

Our city has a convenient, no fee, Tax Instalment Payment Plan (TIPP) which automatically withdraws the same sum 11 months, final sum slightly lower for the balance. It changes once a year if the Mill rate increases.

I believe our most important action was to re-direct the automatic monthly [principal & interest] mortgage sum to a new [non retirement] investment program until there was sufficient sums to re-direct by percentages. I found it too confusing to make changes to the retirement program as they charge penalties if you go over income limits.

Pass along congratulations to DK #2. There are a ton of grants, awards and scholarships available that are never even applied for! Look for free $$$

[creditcardfree]

In my experience, with a second mortgage, the final payment had to be a certified check. And I had been making online payments, but it wouldn't allow me to for the last one. I'd call them to find out the requirements, so there are no surprises.

[PhilDanley]

Congratulations! Make sure of these three issues:

1. Contact your county Assessor's office so your property tax bill is directed to you.

2. Notify your homeowner's insurer. And continue to follow up. We paid off our home almost two years ago and I received another "Your lender has not paid your premium" letter from our insurer last month. Hopefully THIS time it is straightened out!

3. Make sure the lender sends you a copy of the recorded Reconveyance.

And 4. Celebrate via the beverage of your choice!!

[Nutria]

In my experience, with a second mortgage, the final payment had to be a certified check.

That's very odd.

[Thrif-t]

Thought I'd give an update. I called my mortgage company and they said I should call after my June payment to see what my payoff amount is and that I have to send a personal check. They will not do an auto draft for the last payment. I wonder why? Also, my taxes are due in June so they will zero out my escrow account and I won't have to worry about that.

[Like2Plan]

this website helped me http://www.nextavenue.org/8-key-mone...your-mortgage/

2nd bullet in link will help with the deed recording.

I just wanted to clarify one minor point. This may vary with jurisdictions, but we actually received our deed after we first closed on our house. It was the mortgage satisfaction that we received after the mortgage was paid off. In our case, we were the ones who had to take it down to the county to have it recorded.