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The bank should notify your insurance company, so you need to call your agent, because the bank will cancel the policy that they have been paying for and you need to open a new policy.
We just paid off our mortgage.
What is next?
I am assuming, that Wells Fargo will mail us some sort of statement, that we take to somewhere and have house registered in our names as legal owners?
How does all this work?
Thank you
The first question is, did you pay it off as in just paying the amount owed with your last payment, or did you do an official pay-off?
If you just paid it off, you need to call them to make sure they realize you paid the mortgage off and start the satisfaction process. If you don’t call them, they may not realize it for months.
If an official pay off, they usually will file the necessary mortgage satisfaction paperwork with the county, notify your insurance company to change billing, and the tax authority to send you the bills directly.
But, historically, they are slow to file the mortgage satisfaction. They are even slower with sending you a copy. They almost always forget to tell the tax man. And, the insurance company may never be told.
My advice from past experience, pick up the phone, call the bank to make sure it was recorded, check your county recorder’s office to verify the recording and get a copy if the bank hasn’t sent you one yet, call the tax dept. and the insurance company to get the bills to you. May be some extra steps on your part, but will save you a lot of headaches down the road.
P.S., don't forget the escrow account. Make sure you get a refund if due one!
Oh, and it was official pay off. Very easy - logged into account, requested pay off statement, downloaded and printed - and voila. It's PIF now in my online account with them. I'll hawk the rest. I learned my lessons.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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You most likely financed your property with a Deed of Trust. When it is paid off you should get a Reconveyance Deed from the Trustee (who is not the bank) which should be recorded with your county recorder.
You might also want to check your credit report later to make sure it reflects that this loan is paid off.
Re: the liability problem, you can buy additional insurance beyond your homeowner's policy if you are concerned that someone might sue you.
In my state it's also good to have a will and trust and put the house in the trust to avoid probate or complications for your heirs. This may be different in your state.
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