Will a copy of my mortgage satisfaction letter be enough to sell my house?

This happens more than people think, and you are not stuck. What matters is not the paper in your hand, it's whether the satisfaction of mortgage was recorded with the county when the loan was paid off. If it was, that recorded document is the real proof, and a title company can pull it directly from county records. Start with a title company, not the mortgage company, and ask them to search the recorded satisfaction directly. If it turns out it was never actually recorded, your title company can walk you through getting it recorded now, or in rare cases a corrective document from the lender. This is uncommon but does happen with older loans, especially if the lender has changed hands since. Your closing attorney or title company is who resolves this, not the town office. Nick Nikolov Brokered by HomeSmart Houston

Owen, the person you need to satisfy isn't your town clerk, it's the title company that handles your closing. So before you chase more paper, have a Spokane title or escrow office run a search on your parcel. If the release was recorded back when you paid off, it's already in the county records, and a certified copy of a recorded document carries the same weight as an original. If nothing was recorded, that's the real thing to find out, and finding it out now instead of two weeks before closing is what saves you. It also changes what you ask your old servicer. You're not asking for another copy, you're asking them to execute and record a release. A front line rep almost always hears the first request. If they stonewall, that's the hour worth spending with a Washington real estate attorney. And yes, this comes up plenty, mostly on older loans. I'm licensed in California, so confirm the Washington side locally. Alla Novytska, Realtor®, JohnHart Real Estate, DRE #02254775

Yes, this does happen, and it doesn’t necessarily mean it will delay your sale. I would recommend contacting the title/escrow company now and having them pull a preliminary title report to confirm whether the mortgage was properly released from the property records when you paid it off. If the release or reconveyance was recorded, you may not need the original satisfaction letter at all. If it was never recorded, there are still procedures to get the lien cleared. I would have title look into it before you get into escrow so there are no surprises at closing.

Owen, this will not be sufficient. Typically, the original deed is also going to be required, along with various disclosure forms and a formal title search. Speak with a title company or real estate attorney to confirm exact requirements. Keith Jean-Pierre Managing Principal The Dapper Agents Real Estate Operations in ALL 50 States

Great question Own and congratulations for paying off your mortgage! I'm not necessarily well versed in Washington State real estate law but I did grow up in Spokane and wanted to offer an opinion on what you can do rather than just post a random ai response. As stated by another agent in this thread, you should as a Title Company to pull a prelim on your house to see if there is still a mortgage lien filed against the home. I would think there isn't and if that is the case, you can proceed with the sale. If the lien is still there, and it could be, then the Title Company can order a payoff which should clear up anything issue with the past mortgage servicer. My suggestion is to make this the first step in selling your home and to ask a great local Real Estate agent to get you in touch with a Title Company. Best to get this all taken care of now rather than doing is once on the market. Good luck. It will work out fine.

This is an excellent question and congratulations for paying off your mortgage. I'm not necessarily well versed in Washington real estate but I did grow up in Spokane and felt compelled to answer your question rather than send some standard ai response. As stated by another agent in this group, you should reach out to a local Title company and get a prelim pulled for your home. Most likely, it will show there isn't a lien with the mortgage company against your property. If there is still a lien showing, the the Title company can request a payoff and everything should line up ok. A great local Real Estate agent can get this started for you if you don't know a Title Company. I would make this the first step in selling your house so it's all sorted now rather than later. Good luck.

Hi Owen, A copy of your mortgage satisfaction letter usually isn’t what determines whether you can sell your home. What actually clears title is the recorded mortgage release at your county recorder’s office. If the release was properly recorded when you paid off the loan, you don’t need the original letter at all and a certified copy from the county works the same and is what title companies rely on. If the release was never recorded, that’s when issues come up. In that case, the lender (or its successor bank) needs to record a new release. If they can’t or won’t, your title company can often help track down the correct entity or use an affidavit of satisfaction to clear the lien. This situation is very common with older loans, and title companies deal with it all the time. Your best next step is to have a title company run a preliminary title search. They’ll confirm whether the release is already recorded, whether a new one needs to be filed, or whether they can insure over it so your closing isn’t delayed. Good luck!

Hi Owen, you are not stuck. It's not whether you still have the original payoff letter, but whether the old mortgage or deed of trust was officially released in the county records. You should contact a Spokane title or escrow company now and have them check the property records. If the release was recorded, you may be able to obtain a certified copy and proceed. If the lien still appears after the title company check, ask the old lender for a newly signed, recordable release or reconveyance, not just another photocopy. Washing law provides ways to clear a paid-off lien if the lender does not cooperate. This happens, and it is usually fixable. The main thing is to address it before closing os it does not delay your sale.

Once your agent orders a preliminary title report, there will be proof that there is no mortgage or lien on the property. Maybe you can ask your Realtor to order that for you as soon as possible.

Short answer, Owen: the piece of paper in your file is not what clears your title. The recorded document at the county is. Once you know whether that release was actually recorded, this is usually a small problem instead of a big one. Here is the order I would work it, starting today rather than after you list. First, check the county land records. Go to your county recorder or auditor and search your parcel. You are looking for a recorded release, satisfaction, or reconveyance from that lender. If it is there, order a certified copy and you are done. A certified copy of a recorded document carries the same weight as the original, and it is what a title company wants anyway. Your town wanting an "original" is a different request from what your closing actually needs. Second, if nothing is recorded, that is the real issue, and it is worth knowing now. It means you paid the loan off but the lien was never cleared from public record. That will show up on the title commitment as an exception and it will stall your closing. Third, if it was never recorded, you have more paths than people think: Go back to the servicer and ask them specifically to prepare and record a release, not to send you another copy. Those are two different requests and the first phone rep usually hears the second one. If the lender merged or no longer exists, the successor institution or its custodian can often still execute a release. Your title company can usually track down who that is faster than you can. Most states have a statutory backstop, generally some form of affidavit of satisfaction, that lets a release get recorded when the lender will not cooperate. That is state specific and it is where you want a real estate attorney, not me. The title underwriter can also sometimes just insure over an old paid-off lien when the payoff evidence is solid. That costs you nothing extra and it is the fastest fix when it is available. Quiet title is the last resort and rarely necessary for a straight paid-off mortgage. The practical move: bring your copy, your payoff letter, and your final statement to a local title company now and ask them to run a title search before you list. They will tell you in a few days whether you have a problem at all. Doing that up front is the difference between a two week fix and a blown closing date. To answer your other question, yes, this happens constantly, especially on loans paid off before electronic recording was standard. It is common enough that title companies have a routine for it. I am Zoltan Peresztegi, a real estate professional in Los Angeles and the South Bay, and I am not an attorney, so treat the statutory piece as something to confirm with a Washington real estate attorney or your title company. You are not stuck. You are just early, which is the good version of this problem. Zoltan