Last Mortgage Payment by Edith Lank on Creators.com

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Title and Deed Dear Edith: My husband and I recently paid off our home mortgage. Only my name is on the deed. I would like both of our names to appear on the title to the house, so that in the event of my death, my husband would clearly have ownership of the …Read more. Making Lots on the Sale Dear Mrs. Lank: I've lived in my house for 32 years and want to sell this year. I am widowed and understand that I will have $250,000 that will not be taxed from the proceeds. Am I required to pay capital gains on a portion of the remaining monies? …Read more. Can't Kick Tenants Out Mrs. Lank: I am interested in buying a condo that is currently rented out. The seller says that the lease isn't up until for seven months and therefore I couldn't move in until then. If I bought this condo, would I be forced to become a landlord? Or …Read more. Did He Overpay? Dear Edith: I bought a house this summer, and in light of the National Association of Realtors' admission that they've been overstating home sales since 2007, I'm wondering if that faulty data may have made me overpay for my house. — L. Answer:…Read more.

Last Mortgage Payment

Dear Edith: We just made our last mortgage payment. I heard there should be one more thing to do, which is to obtain a recording with the local county office. What do we need from the lender to do this recording? What is this recording about? — J.

Answer: Anyone who looks at your county's public records can see that there's a loan out against your house. You want a new document filed there, so that anyone — a prospective buyer, for instance — could see the debt has been paid off.

Many states require your lender to send the document directly to the records office. After that, it's forwarded to you. But the lender may send it straight to you.

It may be called a satisfaction certificate, discharge of mortgage or reconveyance deed. If you receive it without anything to indicate it's been entered in the public records, take it to the county office and put it on record yourselves. This could save a lot of fuss in the future.

Banks are pretty much overwhelmed lately, so give them a few months before you start worrying. Then if you haven't heard anything, check the record office to see if the document is on file. If it isn't and you don't have it, start calling and writing your lender. Keep after them. It's important.

CALLING IN THE LOAN

Dear Edith: Can the owner of a residential mortgage in good standing (no missed payments, no changes in employment) require full payment whenever they choose? — S.A.

Answer: I haven't read the mortgage documents, so I don't know under what conditions the holder of the mortgage might have the right to declare the remaining debt immediately due and payable — "call in the loan." Usually it's if monthly payments aren't made.

A mortgage document might list other happenings that would give the lender the right to call in the loan immediately: if the borrower destroyed a building on the premises without permission, for example.

If you're just curious, the answer lies in the mortgage document; read it.

If you're asking about a specific situation, consult a real estate lawyer.

SELLER GOING BANKRUPT

Dear Edith: What happens when you buy a house from a person as a "for sale by owner," and that person, who is still paying a mortgage on the property to a bank, goes bankrupt? — e-mail

Answer: There's nothing risky about buying a house without a real estate agent, but it sounds as if you didn't have an attorney, title search or title insurance, which is indeed risky. I can't imagine a lawyer would have let you purchase the property with that mortgage still out as a debt against it.

Bankruptcy doesn't cancel a mortgage, if that's what you're hoping. The loan will remain as a claim against your house. If payments aren't made, or if the lender finds out there's been a change in ownership, they can declare the whole debt immediately due. If you couldn't pay, they could foreclose and put the place up for public auction.

REDUCING THE COMMISSION

Ms. Lank: If my real estate agent is selling my house as well as being a buyer's agent for finding my new home, should there be any reduction in his or her commission rate? — e-mail

Answer: There's no "should" about it. Commissions are a matter of agreement between you and your agent.

I expect you'd have a good argument if you're authorizing your agent to put in reduced time and effort on the selling or buying end, to reduce the amount usually spent on advertising, and to reduce the share of commission offered to cooperating firms that might bring buyers to your home.

Edith Lank will respond personally to any questions sent to her at 240 Hemingway Drive, Rochester, NY 14620 (please include a stamped return envelope), or readers may e-mail her at ehlank@aol.com.