You paid off your home, now what?

Congratulations on paying off your home! That’s a huge milestone. Here’s what typically happens (and what you should do) after paying off a house in Colorado:

1. Receive a Payoff Confirmation

Your mortgage lender should send you:

A payoff statement or confirmation letter showing your balance is $0.
A paid-in-full notice or similar documentation.

2. Release of Deed of Trust (Lien Release)

In Colorado, most home loans are secured with a Deed of Trust, not a mortgage. Here’s what happens:

Your lender (or their trustee) is required to record a “Release of Deed of Trust” with the county clerk and recorder’s office.
This document removes the lender’s lien from your property.
In Colorado, the lender must file this within 90 days of payoff (per C.R.S. § 38-39-102).

Tip: Check with the Douglas County Clerk & Recorder after a few weeks to confirm the release was recorded.

3. Get Your Promissory Note (Sometimes)

Some lenders will return your original promissory note, marked as “Paid in Full.” Not all do, but you can request it for your records.

4. Stop Escrow Payments (If Applicable)

If you had an escrow account for taxes and insurance:

That account is typically closed.
Any leftover funds should be refunded to you.
You’re now responsible for paying property taxes and insurance directly.

5. Notify Your Homeowners Insurance

Let your insurance provider know:

The mortgage is paid off.
Remove the lender as the mortgagee (they’re no longer entitled to claim payments).
Ensure your policy stays active and updated.

6. Keep Records

Store these safely:

The Recorded Release of Deed of Trust
The payoff statement
Any final escrow refund documents
Your deed (you should already have this, as you had to own the home to encumbered it by the loan)

7. Consider an Estate Plan or Trust

Now that your home is fully yours, it may be a good time to:

Update your will or trust to include the home.
Consider a beneficiary deed in Colorado to avoid probate for the home.

If you want help checking your county records for the lien release, please call the Douglas County Clerk & Recorder at 303-660-7469.

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You paid off your home, now what?