
A loan may payoff due to several reasons. Most of the times a mortgage loan can be paid off for one of the following reasons:
Maturity date has reached – Once a borrower reaches to last installment to be paid, a lender suppose to release property documents.
Property has been sold – If property has been sold, a lender has got no rights to keep the property documents with him and should release the property rights as soon as possible.
Property has been re-financed – Generally people go for re-finance when there is a change in interest rate in the market or to make some cash out money when there is a hike in equity of the property. In such cases, borrower needs to pay off the earlier loan before going for a re-finance.
There are certain other important points that a borrower needs to look after for payoff a mortgage loan. They are given below
* Is there any remaining balance to be paid
* Any interest due till the payoff date
* Any outstanding late charges
* Other outstanding fees or any charges
* Borrower sends a final “payoff check”, full remaining loan amount
* Remaining Escrow funds returned to borrower
* Prepare payoff necessary release forms
* Borrower releases from debt
* Documents are released
0 comments:
Post a Comment