What Happens When You Pay Off A Mortgage?

Mike in Oviedo just paid off his mortgage. He wants to know from Robert Palmer what happens next in the process? What does he need to do to secure proof of purchase?

First and foremost, the deed would have been recorded and executed with you when you purchased the home. Florida is a lien theory state which means a mortgage or deed of trust will create a lien on the title of the property being mortgaged while the mortgagor retains the legal and equitable title. This means you own the home from day one, the deed is stored in public records, but you can keep a copy if you choose. When the lien is paid off, the bank executes what is called a satisfaction of mortgage and then they send it to the county. The county will then charge recording fees to record the satisfaction of mortgage in public records. Once the county gets it recorded, they will return it to your lender who will then send it to you. If you would like to shorten the process, you can contact the county yourself to receive the document. In some counties you can search the online public records within a few days and print it out. Even though it wonâ??t be the original, it will have the recording officeâ??s official recorded stamp on it that shows that it has been accepted by the county and your home is free and clear.