Q: Q: I just read an article about a woman who hasn’t received her release of a mortgage document from her lender. If it was my big box lender, she couldn’t get her mortgage release until she paid a special release and postage. I had to pay $ 158.50 two years ago to get it.
A: A: Thank you for your message.our digit We talked about the documents you might get after you pay off your mortgage. For the past 12 years or so, some lenders have been unable to send a document to the borrower indicating the final repayment of their mortgage.
The lender can send a final loan statement indicating that the borrower has paid off the loan. They can even send a letter informing the borrower that the lender has received the final payment for the loan and has no further deadline.
However, the lender also needs to send the document directly to the borrower or to the office that handles the recording or filing of real estate goods. This document is called the release of a mortgage or the release of a trust deed.
I heard that the release document was not available. When you contacted your big box lender, you agreed to send you a document once you paid the fee. This fee typically covers the nominal document preparation fee in addition to the recording or filing fee. When you sell your home and request a payment letter from your lender, the lender will include these charges in your quote. However, if you simply repay the loan naturally or send additional money to repay the loan, the lender will net out and close your account and assume that you have been paid in full without sending a release document. May be displayed.
For example, in Cook County, Illinois, the cost to record a release fee is $ 98. Some lenders may add a $ 98 fee to the payoff amount and include it as a line charge in the payoff letter. Some lenders charge $ 5 for the release letter, while others charge a higher amount. Some lenders may even charge the owner to wire their mortgage money to them.
If you sell your home and the payment agent wires the final payment to the lender, the payment agent may charge you a fee to wire the funds, and you are paying The lender charges a second fee to receive the money.
Secondary idea: We are really in a business environment where everyone charges for everything.
Ilyce Glink says “100 Questions to Ask First Home Buyers“(4th edition). She is also the CEO of Best Money Moves, an app that employers provide to employees to measure and dial down financial stress. Samuel J. Tamkin is a Chicago-based real estate lawyer. Contact them through the website, BestMoneyMoves.com..