Mortgage Satisfaction For a Seller

Very often, a person who is selling their home will ask me, “How does my mortgage get satisfied at the time of closing?” Prior to the closing, the seller will provide my office with the name, phone number, and account number associated with the mortgage that they currently have on their property. We will then write for a mortgage payoff statement.

Based upon that mortgage payoff statement, the remainder amount will be inserted in the closing statement by the buyer’s attorney. The money is then sent to the lender to pay off the mortgage. Upon receipt of the mortgage proceeds, the mortgage company will send the original promissory note marked, “Pay in Full” to the seller. The mortgage company will also send the original mortgage endorsed for cancellation to the county clerk. Upon receipt of the mortgage endorsed for cancellation, the mortgage which the buyer obtained will be canceled.

Mortgages tend to be a heavy burden for homeowners and many people look forward to having it paid off. If you are concerned about the state of your mortgage when thinking about selling your home, it is best to speak with an experienced real estate attorney.

Joseph Gachko, Esq. is an experienced New Jersey attorney who can assist you in any of your real estate-related legal matters. If you require legal counsel for your real estate matters, please contact The Law Office of Joseph Gachko today to set up a consultation.