Help me out on paying off Mortgage.....

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Help me out on paying off Mortgage.....

Post by doneat53 » Wed Feb 06, 2019 8:56 pm

Hey Bogleheads,

So I called my mortgage company today (Freedom) to figure out how to close out my mortgage (just a couple thou left). The person was a bit opaque and despite my efforts I really couldn't get a straight answer from him. He states that if I pay the balance off on my account that that isn't necessarily my loan balance and that I need to request a final payment statement. Ok, I sort of expected this so that's why I called.

What I don't get is:
1) the final payment must be by wire (not ACH transfer) or cashier's check overnight mail!
2) if I pay the final balance currently indicated on my statement for their account he said it will be sent back to me. Weird, (I have no escrow funds as I pay my taxes and insurance separately).
3) If I pay all but $1.00 of the final balance he said I would still need to wire transfer, or cashiers check o/n mail the final $1.00.
4) Next payment is due 3/1/2019 and all this will occur well in advance (like 2/15/2019)... so in theory I could send them a personal check, have them cash it and it would clear before 3/1. What bugs me is why they get to dictate how I send the final payment to them.
5) He claims their may be a $30.00 close out fee but he doesn't know for sure...
6) He said once paid they will send a "free and clear" statement that I can take to the county to get the deed.

Since this is the first mortgage I've ever paid off, I'm looking for people's experiences here and whether there is some explanation for this strangeness or is it just my mortgage company?



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Re: Help me out on paying off Mortgage.....

Post by runner3081 » Wed Feb 06, 2019 9:12 pm

Very much the same as my experience from October with some small variations.

Final payment had to be wired (though I did have check option, wire was much easier, 3 clicks and only $20).

1) Requested a payoff statement
2) Wired money
3) Fee was included (ours was only $10)
4) Sit back and wait for 3 weeks or so
5) Escrow refund, if any, is sent
6) Lien satisfaction papers sent
7) Our bank, Colonial did file with the county
8) I called homewners and flood insurance company and had them change payee to me

I will admit, the feelings that many people have of relief and happiness did not find their way to me. It was just another day, nothing special. I think this is probably due to thinking of that moment for 12+ months. When it came... well, it came and went :)

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Re: Help me out on paying off Mortgage.....

Post by willthrill81 » Wed Feb 06, 2019 10:28 pm

I've never heard of a bank that required the final payment be wired and don't think that they could actually stipulate that. When I worked in the mortgage division for a bank, we always accepted personal checks for the final payment and would fairly often have to turn around and cut the borrower a check for the difference between what they paid and actually owed.

Just call them back and request a payoff letter effective for a couple of weeks out and send them a check for that amount. That should be sufficient to get everything else rolling.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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