How do I know my mortgage was paid off when I sold my home?
When you closed on the sale of your home a HUD-1 settlement statement was prepared and the payment information is reflected there. The title company or attorney who handled the closing will arrange for these funds to be transferred to the bank. When you originally borrowed the money to buy the home you signed a deed of trust. This was recorded in the county clerk’s office where the property is located. Now that you have paid off your loan, there has to be something filed to indicate that the deed of trust has been paid and released. Your lender or Title Company will arrange to file and record this release.
Most of the time your lender or settlement company will return the document back to you marked ‘paid and cancelled’. You can also confirm this with your local clerk’s office. This process can take up to 90 days.

Posted By: Debbie Cobb on Saturday, January 09, 2010