Your Home Has Sold! Now What?

Firstly, CONGRATULATIONS, you've just officially sold your home and are moving on to the next big thing! Whether that's relocating, upgrading/downsizing, or traveling the world - your newfound options are abundant! However, there are a few extra steps you'll want to take to ensure the transition settles over smoothly. As your local title service and settlement agents at the Lake of the Ozarks, Arrowhead Title has important details regarding what to do AFTER the closing papers have been signed. Continue reading to learn more about these crucial post-closing steps, and for additional title expertise, trust the best title company at the Lake of the Ozarks, Arrowhead Title.

Keep your Closing Statement

There are many documents involved in the sale/purchase of a home, and while not all of them are necessarily pertinent to your everyday needs, some are mostly legal jargon, a few of them are essential to keep well-kept records of. If questions or concerns arise after the closing, these documents are used to quickly and effectively clarify any confusion.

Closing Escrow

If you had impounds, or "escrow accounts" on your home loan, say for taxes and/or insurance, you likely had some balance in the escrow account at the time of sale. There are a couple of ways this is handled and it varies depending on the financial institution/person(s). One way the escrows are closed is during the official payoff statement, escrows are deducted from the final balance to pay off the loan. The second way escrows are closed is via a refund, roughly 15-30 business days after your payoff date the funds that remained in escrow accounts are given back to the original owner.

Cancel Homeowners Insurance

Don't pay for insurance coverage on a home you no longer own, call your home insurance agent and request to cancel the policy. Even if you've used the same agent for a new home, they require official cancellation requests to process the end of the policy. You may receive a prorated amount if you had paid ahead on the existing policy.

"Paid in Full" Promissory Note

When you originally financed your home, you signed a Promissory Note. This note is an agreement between yourself and the lending institution/person(s) that you promise to pay back the amount financed. Once your home has sold the loan will be paid off using proceeds from the sale. Ensure your Promissory Note is marked "paid in full", indicating that your debt has been satisfied and that you are no longer obligated for any payments. Without the "paid in full" designation, it's hard to verify that you're no longer liable and can lead to expensive and time-consuming issues.

Release of Lien

After the loan balance has been paid off your lending institution/person(s) should sign a Mortgage Release of Lien Certificate, removing the existing lien on the home so ownership changes are reflected correctly on all statements of credit going forward. Without a signed lien release you may encounter scenarios where you appear to still be liable for the debt on a home that you no longer have ownership rights to.

Update Ownership with Taxing Appraisal District

One thing many overlook after selling their home is notifying the Taxing Appraisal District. Contact them to let them know that you are no longer the owner of the home. This will keep you from being overcharged on property taxes during tax season.

Consult With Your Title Company

Lastly, should you have any questions, comments, or concerns about the post-closing process - always speak with your title company. At Arrowhead Title, we pride ourselves on being the best title company at the Lake of the Ozarks. We love what we do and are here to solve any and all of your title escrow and settlement needs at the Lake of the Ozarks.


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