Payoff of loans - what documents should I end up with?

kashka_katJuly 18, 2012

Maybe I need to see an attorney - thought I would try asking here first.

I recently paid off a couple of mortgage loans, one the primary real estate loan, the other a second construction loan thru the city.

I paid the first one first (Chase), and the second one second (US Bank). From US Bank I recently received the original mortgage documents that I signed way back when, with a "paid" stamp on it.

From Chase I got nothing of the sort, no original documents - just a computer generated form letter that says I paid X number of dollars, and dont owe them anything else.

What documents should I actually have in my possession now to show that I am the owner and no one else has any claim on the property anymore? Do I need to be getting any orignal documents from Chase? That darn thing went from my original credit union, to Washington Mutual, then to Chase so who knows where the original docs are.

This is a very DUMB question (thank goodness for internet anonymity - LOL) but... what exactly is a "deed" anyway. In looking thru my papers I don't see anything that actually says "deed" on it.

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berniek

This is the law in my state:
I paid off my loan and my mortgage company has not released the lien. What can you do?
Colorado Revised Statutes Section 38-35-124 states that the "creditor or holder of the indebtedness shall, within ninety days after the satisfaction of the indebtedness and receipt from the debtor of the reasonable costs of procuring and recording the release documents... file with the Public Trustee the documents required for a release as prescribed by section 38-39-102." If your lender fails to comply with Colorado law in this regard, please contact your legal advisor. This office (County Clerk & Recorder) does not have the authority to enforce this law.

    Bookmark   July 18, 2012 at 2:29PM
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popeda

We recently applied for an equity loan after paying off a smaller one. The lender required proof from the county that the deed was released. County gave us a copy. This sounds easy, but it was actually an ordeal since our lender outsourced the process after payment. But eventually we got our copy showing the volume and page where the county recorded release of lien.

    Bookmark   July 18, 2012 at 2:56PM
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kashka_kat

Here's answer to my own question - google knows everything!

"Under Wisconsin law, you only ever receive one deed to your property and you should have received it shortly after you closed on your property.

If you take a look at your deed, you will notice that your name appears as a "grantee" but the bank is never mentioned. So, when you pay your mortgage in full, it is not necessary to update your deed.

What does need to be done is to have a "Satisfaction of Mortgage" document recorded with the Register of Deeds office. Financial institutions are required to record such a document within a specified timeframe. If you received a "Satisfaction of Mortgage" endorsed with a time, date and document number from a Register of Deeds office, nothing further needs to be done. If you have not received the endorsed satisfaction, you should check with your lender to be certain they processed the appropriate paperwork"

    Bookmark   July 18, 2012 at 3:36PM
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brickeyee

Wisconsin is listed as a 'Trust Deed' state.

If you had a deed of trust (and NOT just a simple mortgage) a 'deed of re-conveyance' is required to remove cancel the trust deed you signed at purchase.

Mortgages normally require court action (judicial foreclosure), while trust deeds allow the trustee to foreclose (often with no court involvement).

Some states have added at least some judicial over-site to trust deed foreclosures.

    Bookmark   July 18, 2012 at 4:48PM
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redcurls

I have a deed for my house which I received shortly after closing in 1973. I had a mortgage at the time. It is sized something like the old folded road maps you used to get at gas stations (remember those?) and fits inside an open-top envelope (similar to an old bank book...remember those as well?) No one has EVER asked me for it...and we got a couple of re-fi's and home equity loans on the house over the years.

    Bookmark   July 18, 2012 at 7:31PM
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brickeyee

"No one has EVER asked me for it...and we got a couple of re-fi's and home equity loans on the house over the years."

As long as it was recorded at the courthouse they have no interest in seeing the original.

If a chain of title issue showed up, a title insurance company might be interested.

In a :"trust Deed' state, you recive title at settlement when you purchase, and then immediately execute a Trust ded conveying the proprty to a trustee named by the note holder.

When the note is paid off, the trustee issues a 'deed of re-conveyance' back to you (and it better get recorded) showing you are once again the sole owner of an encumbered property.

Mort-age lenders record a certificate of satisfaction to remove their encumbrance on the title.

Unless there is a default (foreclosure) the process looks about the same, just slight.y different documents being recorded (especially at satisfaction of the note).

I have had second notes recorded as mortgage notes in deed of trust states (out of state lender).
It irritated my attorney who had to look up how to release a mortgage (write the certificate of satisfaction) since it was not a standard thing in the area.

    Bookmark   July 19, 2012 at 10:17AM
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kaismom

Some banks are good about sending in the 'deed of reconveynace' and others are not so good about it. (Ihis is from personal experience. I have paid off multiple mortgages.)

Check your county records where everything is (should be) on line and free. If it has not been recorded, have the bank send it in to the county so it can be recorded.

    Bookmark   July 23, 2012 at 11:55AM
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RooseveltL

Did you originally get your loan via chase or mortgage broker/finance company which sold it to chase?

    Bookmark   July 24, 2012 at 9:34PM
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kashka_kat

Got loan thru local credit union, who sold it to Washington Mutual, then they went under Chase got it.

Went to the County and it turns out Chase had sent them the necessary documentation - so I got my papers and copy of the deed -yayyy! Now what do I do with them! I'm thinking - fireproof storage box?

It makes me nervous though that they haven't or can't send back the original loan documents like the other bank did. I know it's HIGHLY unlikely anyone would come to me claiming I still owe on the loan, but the fact is... sometimes "stuff happens" so maybe I'm just a leeetle paranoid...

    Bookmark   July 25, 2012 at 1:03PM
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brickeyee

"sold it to chase?"

Who you may have sent the payments to has nothing to do with who owns the underlying note.

The note owner is responsible for ensuring that is is closed out correctly;y when it is paid.

Many notes even require them to pay the recording fees.

The loan servicer (the folks you sent payments to) may also handle the release for the note owner.

No one makes payments directly to Freddie or Fannie.

They both use servicers for the month to month handling of the loans they own.

    Bookmark   July 25, 2012 at 1:03PM
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brickeyee

" Now what do I do with them! I'm thinking - fireproof storage box? "

If they are recorded they originals no longer need to be carefully protected.

You can always get another certified copy.

    Bookmark   July 26, 2012 at 11:26AM
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