What is what to do with house deeds when mortgage paid off?

When you pay off your mortgage, you'll need to take a few steps to ensure you have clear ownership of your property. Here's what generally happens with your house deeds:

• Lender's Responsibilities: Your lender (usually a bank or mortgage company) is responsible for releasing their lien on your property. They'll do this by recording a document called a satisfaction of mortgage (or similar, depending on your location) with the local land records office (often the county recorder). This document officially states that the mortgage has been paid off and the lender no longer has a claim on your property.

• Receiving the Deed: The original deed to your property may have been held by you, the lender, or an attorney. Regardless, upon paying off the mortgage, you should obtain a copy of the deed, if you don't already have it.

• Confirming Lien Release: It's crucial to confirm that the satisfaction of mortgage has been properly recorded. You can typically do this by checking the records of your local county recorder's office. They may have an online search portal, or you may need to visit the office in person or request a search.

• Storing Your Deed: Once you have a copy of your deed and have confirmed the lien release, store the deed in a safe and secure place. Important documents like your deed, title insurance policy, and other ownership-related paperwork should be kept in a fireproof safe or a safe deposit box. These are important for proving ownership in the future.

• Review Title Insurance: Paying off your mortgage doesn't affect your title insurance policy. Title insurance protects you from potential problems with the property's title, such as undisclosed liens or ownership disputes that existed before you bought the property. While the original policy remains in effect, it's still a good idea to keep it with your other important documents.

• Refinancing Considerations: If you plan to refinance%20your%20property in the future, having your deed and proof of mortgage satisfaction readily available can speed up the process.