In a financed home sale, the settlement agent commonly uses proceeds to pay the required lien payoffs and obtain releases. It depends on sufficient funds, correct quotes and completed settlement instructions; it is not automatic without coordination.
Selling
Selling while you still owe on the mortgage
How the payoff process works, and what happens if you owe more than the home is worth.
By Lighthouse Companies, LLC · Updated · 2 min readLighthouse provides educational information, not a personal loan quote, lending decision, or legal or financial advice. Verify the figures against your documents and ask your lender, servicer, or a qualified professional about your circumstances.