Records – A Guide to the Paperwork Involved
The Promissory Note or Real Estate Note is the most important document to the transaction. You will need to locate the ORIGINAL note in order to sell your mortgage. The Note is the promise to pay back the loan. It should contain at minimum the loan terms, including the payment amount, interest rate, amortization schedule (which includes start and end dates) and more and may also include consequences for non-payment or default. This document does not get recorded at your closing and it should be given to you for safe keeping.
Where to look for your missing note:
- Search your home–file cabinets, attic, basement, under the bed, safety deposit box, etc.
- Title company where the transaction closed
- Servicing agent-If account is being serviced
- Lender-if you have ever used property as collateral
- Ask your accountant, attorney, other key people.
If the note can’t be located after exhausting all possibilities the only option is to have the payor sign a copy of the Note along with a Lost Note Affidavit.
Payment History-Keep good, documented payment records! If the account is being serviced records will be readily available. If you are servicing the account yourself you may supply bank statements or copies of deposits showing that you received payments from your payor. A ledger is great, but verifiable proof is what you should have.
Recorded Mortgage/Deed of Trust or Land Contract: The debt instrument secured by the real estate. This document is recorded and is returned to you several weeks after closing unless a servicing company is holding your original documents.
Hazard Insurance Documents: If the property you sold is improved then your payor should have a current hazard insurance policy, normally a homeowner’s insurance/fire policy. If the property is in a flood zone then flood insurance will be required. The policy should list you as the loss payee. It should list the property address, be current and cover the market value of the property. Commercial and rental properties should also have liability coverage.
Settlement/Closing Statement—This document provides a wealth of information. It will show who closed the original transaction. It proves the sales price and the down payment. It will show if a Lenders title policy was purchased at closing. Also if your original documents are missing, it gives you a place to look.
Title Insurance Policy If a Lender’s title policy was issued at the time of sale this will help underwriters complete the sale of your note in a more timely manner. If a Title policy was issued at the original closing in most cases a “date down” can be completed along with an endorsement to the policy.
Payor/Property Information-contact information on your payor such as phone number, current address, SS#, employment information, etc. is important to have. Also, information regarding the property such as an accurate description of the improvements, property taxes, etc.
Miscellaneous Documents-Keep any important documents that were an important part of your closing in a safe place. These documents may include items such as the following: Mobile Home Titles, Corporate Documents, Estate Documents, etc.