So, you’ve refinanced or sold your home and paid off your mortgage(s), at closing… What happens next?

Cancel Automatic Mortgage Payments (refi and sale)

If you had your mortgage payments pulled automatically from your account, be sure to cancel them with the mortgage company.

 

Cancel Homeowners Insurance (only upon sale of property)

Call your homeowners insurance company and let them know you have sold your property and to cancel your homeowners policy on said property.

 

Refunds (refi and sale)

The title company will send your payoffs to their respective mortgage companies. Once those mortgage companies receive your payoffs, they take approx 4-8 weeks to send you any refunds owed back to you…

Interim Interest Refund

Extra Interim Interest is often collected to make sure there is enough time for the payoff to get delivered to the lender (typically 2-7 days, depending on the time of year and holidays during transit). This could be pennies or a couple hundred dollars. It depends on how large your balance was, the interest rate, and how many extra days were collected for at closing.

Escrow Refund

If you had an escrow account with your mortgage company, you should also be receiving an Escrow Refund. The best way to know how much you should be receiving is to review your most recent mortgage statement and look for the Escrow Balance. That is typically the amount you will be receiving back from the mortgage company. The caveat to that would be if your insurance or property taxes came due after the title company ordered the payoff from the mortgage company.

  • In the case where the insurance was already paid, you would receive a refund from your insurance company for the prorated time you owned the property from policy renewal through the closing date.
  • In the case where property taxes were paid by the mortgage company and also paid on the settlement statement at closing (so title could ensure clear title to the property), the county will accept the payment from the first check they receive.
  • If that check came from the mortgage company, then the check from the title company will be returned to the title company and the title company will issue a refund to you. This can sometimes take up to 12 weeks as the counties return the checks to the title company so the title company can issue a refund to you.
  • If that check came from the title company, then the check from the mortgage company will be returned to the mortgage company and the mortgage company will issue a refund to you. This can sometimes take up to 12 weeks as the counties return the check to the mortgage company so the mortgage company can issue a refund to you.

 

Lien Releases (refi and sale)

When a mortgage has been paid in full, the mortgage company must issue a Release to be recorded at the county releasing the lien from the property. Once it has been recorded that the lien is paid in full, you will be mailed the original Release, as well as the original Note and Deed of Trust that you signed when you originally took the mortgage out. It is important to note that these often come in envelopes from a Clearing House and they look like junk mail, so don’t throw away any mail until you have received releases on each mortgage that was paid in full.

Should you have any questions on these processes, you can call your lender(s), or call me. I’m happy to help!

 

Warm Regards,
Roni Lambrecht

Independent REALTOR, Agent ID: II100024534 / Office ID:M2005

CMRS, SFR, TRC, MCP, SCLC, CNSA, 2016 S.M.A.R.T. Award Recipient

Cell/Text: 303-902-0121

Email: cci@comcast.net / Backup Email: DoItForDalton@gmail.com

Roni’s Real Estate Website: www.RoniLambrecht.com

“As you grow older, you will discover you have two hands;

one for helping yourself, the other for helping others.”

-Audrey Hepburn

 

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