It may be hard to imagine, but the unthinkable can happen! With good fortune and responsible money management on your side, you will pay off your mortgage and take full possession of your house. Whether you plan to sell your property or keep it for your family, there are still a number of steps you’ll need to take before you’re completely ready to enjoy the satisfaction of ownership.

Secure the release. One of the most important pieces of mortgage paperwork you signed at the outset of your loan was the “deed of trust,” which certified that you had a mortgage on your particular property and were paying it off to your lender. This document was sent to the Recorder of Deeds for safekeeping. Once you have successfully paid off your loan, this document will need to be released from the official record, by submitting a “certificate of satisfaction.” In some cases, your lender will handle the release for a small fee. Other lenders, however, will simply return the promissory note you signed, indicating that the note has been paid and canceled, and it will then be your responsibility to secure the deed of trust release. (Regardless of whether you or your lender handles this release, make sure you have the promissory note returned.)

Rename the insurance beneficiary. While you had the mortgage, the beneficiary for your homeowner’s insurance has been your lender. Now that you own the property, make sure to inform your insurance company–in writing–that you should be the new beneficiary.

Take responsibility for tax bills. Your county tax collection authority will need to be notified that you should receive any tax bills related to your insurance or escrow.

Discontinue bank payments. For ease and peace of mind, you probably set up an automatic bank payment to be withdrawn from your account and paid to your lender each month. Make sure to tell your bank that this automatic payment can be canceled.

Taking care of these tasks not only frees you of the responsibilities associated with the mortgage once and for all, it also allows you to maintain a clear and official title that allows you to both prove your right to the property and your right to sell it, if you desire. Congratulations! You own your home!

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These are great times for buying real estate if you know where to look. One of the ways to find great deals is at a real estate auction. The Department of the Treasury holds several real estate auctions each year throughout the entire United States and in Puerto Rico. These properties include everything from undeveloped lots to large, multi-unit residential buildings and commercial property, all of which have been seized from their previous owners due to criminal activity. Money from sales of these properties is deposited in a fund that is used to help finance law enforcement and provide restitution to any victims of the related crimes. For the law-abiding, however, these auctions represent a chance to find and purchase new homes at a fraction of the cost one might find on the standard housing market.

Contrary to the standard methods of purchasing a home, going through a Treasury auction is strictly a cash-for-property deal. All bidders are required to place a minimum deposit in order to participate, which is returned if the bidder does not win the auction. If you place the winning bid for an auctioned property, you must pay this amount in full at the time of closing (within 30 days). There are no payment plans; any loans required should be secured before bidding takes place. An inability to pay for a property in full leads to the auction winner losing their deposit and all claim to the property.

All Treasury property auctions are public to both citizens and non-citizens of the United States, and are held on-site. In most instances, the Treasury also allows for a submission of written bids, sent in one day prior to the auction, and some properties may be bid on real-time via the Internet. Open houses are also held in advance of the auction, and interested bidders are strongly encouraged to examine the property beforehand…there will not be time allotted on the day of the auction and all property is auctioned off as-is.

Depending on the interest in the property and the savvy of the bidders, it’s very possible to find great deals at a Treasury auction. You can find a schedule of upcoming auctions, as well as terms of sale and registration information, by visiting The Department of Treasury website.

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The loan application is nothing without the review of an underwriter who lies at the heart of the mortgage approval process. The underwriter evaluates the application and the property side by side and then renders a final decision regarding the risk that the lender is considering. Underwriters accomplish this task by utilizing several different sets of guidelines, including those set up broadly throughout the industry nationwide. These regulations, as well as their own insights and experience, are all factored in to their final determination.

The underwriter’s primary job is to carefully scrutinize the potential borrower to assess whether they will be able to pay back the loan they receive within the time allotted. The clearest way to make this assessment is to review the borrower’s financial situation. Underwriters will examine:

- Debt obligations, including other loans, taxes owed, and credit cards. They will look at both the total amount owed and the current monthly payments being made.
- Monthly income, including all regular salaries, commissions, and self-employment income. This will also include money collected from investments, such as property.
- Funds available at closing; specifically, the amount that the borrower can contribute to the down payment from their own funds or from the sale of their current property.
- Credit rating, which gives a snapshot of how well the borrower has managed to maintain their debt in the past.
- Miscellaneous factors, such as job stability or responsible investment history, can also be considered in the final analysis.

Underwriters will render one of four decisions, based on the borrower’s request, history, and purported value of the home: they will either approve the loan, approve the loan with conditions, suspend judgment, or deny the loan. “Conditions” describe actions the borrower must complete prior to funding, such as completing and verifying the sale of their previous home.

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