Save old mortgages, etc.?

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Stevedore
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Joined: Thu Aug 28, 2014 3:24 pm

Save old mortgages, etc.?

Post by Stevedore » Fri Jun 01, 2018 2:19 pm

Over the last year or so I've been scanning old documents & various papers that I had saved for years, without always being sure of why I was saving them.

I'm wondering if there any types of documents for which it's important to keep the actual original papers. Specifically, I have many old paid-off mortgages from houses that we've owned in the past. The fact that they've been paid off is a matter of public record, and images of them are stored in our local county's records. So do I need to hold on to the original paper document, with signatures, rubber stamps, etc?

inbox788
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Joined: Thu Mar 15, 2012 5:24 pm

Re: Save old mortgages, etc.?

Post by inbox788 » Fri Jun 01, 2018 3:14 pm

Do you still own the homes? I've wondered if there are any fees or expenses that can still be deducted or added to the cost basis that need to be tracked and documented through various refinances on a home. If you've already sold the homes, I would find it extremely unlikely any issues would survive the transaction. Let's say a subcontractor put a lean on the home one year and another subcontractor put a lean on the home one day before the sale closed. Say 30 days after closing, this was discovered by the subcontractors. Would the old or new homeowner be under any legal obligation?

barnaclebob
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Re: Save old mortgages, etc.?

Post by barnaclebob » Fri Jun 01, 2018 3:48 pm

I save nothing financially related except tax returns and major documentation of the sale of my previous house and the purchase of the current one. Things like releases of liens, closing documents, major renovation documentation.

The incremental time savings of not worrying about the small stuff has got to outweigh the extremely rare inconvenience of having to dig up some old obscure financial info from over a decade ago.

Hillview
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Re: Save old mortgages, etc.?

Post by Hillview » Fri Jun 01, 2018 3:53 pm

8 years ago we had a HELOC on the house and paid it off the next year. This year we paid off our mortgage and took our a HELOC just in case and the old HELOC had not been taken off the lien. I had to go back and find the loan number of the old HELOC to get it sorted. So make sure the liens are recorded as clear

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Watty
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Re: Save old mortgages, etc.?

Post by Watty » Fri Jun 01, 2018 4:43 pm

Stevedore wrote:
Fri Jun 01, 2018 2:19 pm
Specifically, I have many old paid-off mortgages from houses that we've owned in the past. The fact that they've been paid off is a matter of public record, and images of them are stored in our local county's records. So do I need to hold on to the original paper document, with signatures, rubber stamps, etc?
When people post about paying off a mortgage one thing that I suggest that they do is go back a few months later to confirm that the lien was removed. In some areas you can do that online.

The problem is that once in a blue moon there will be a glitch and the lien was not actually recorded as being removed and this can get complicated if it not found out for years. There was a post a while be that ran into this when they were settling their parents estate and trying to sell the house and there was still a mortgage lien from a loan that had been paid off decades before. The lender had gone through multiple mergers and their old records were basically no where to be found so they had to have a lawyer get a court to remove the lien.

Before you destroy the original documents I would confirm that the lien is no longer on the property.

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