Lenders: How do you take a loan across the finish line?

[Tim Johnson]

What are your most important steps and follow-through principles to getting paid when the note matures or debtor wants to pay off early? What boxes do you check off before you finally shake hands and move on to the next one?

Context: I made my first loan in October 2016, $15k from myself to a house flipping couple's LLC to finish renovations on a single family. It is secured with a first lien (they funded initial purchase with a HELOC). They are just about done with the project and looking to sell the property soon.

[Percy N.]

Tim Johnson are they paying you off prior to selling the property?

If not at closing their closing company or lawyer will contact you to get full payoff info and cut you a check in exchange for a mortgage satisfaction from you.