How do I know my mortgage was actually paid off when I sell?

Three pieces of proof, in order

Paying off the mortgage is the closing attorney's job, not yours and not ours, and it leaves a paper trail you can check at every step.

One: the payoff letter

Before closing, the attorney contacts your loan servicer's payoff department and gets a written payoff statement, good through a specific date, with the exact amount owed including interest to that day. You can ask the attorney for a copy. You can also call your servicer yourself and ask what payoff they issued. The numbers should match.

Two: the settlement statement

At closing you sign a settlement statement that lists the purchase price, the mortgage payoff as a line item, any advance we gave you, and the amount wired to you. The payoff line is the attorney's commitment to send that money to your lender out of the closing funds. It does not come from your pocket, and it does not come after your wire. It is disbursed at the same time. See how and when do I get my money.

Three: the satisfaction on record

Once your lender receives the payoff, they release their lien by recording a satisfaction of deed of trust with the Register of Deeds in the county where the house is. That is the public record that the loan is done. Lenders typically send you a paid-in-full letter as well, usually within a few weeks.

You do not have to take anyone's word for it. Every North Carolina county Register of Deeds has an online search. Look up your name or the property, and the satisfaction will show alongside the original deed of trust.

What if the payoff is more than my balance?

It usually is, by a little. A payoff includes interest through the closing date, and sometimes a small fee for the payoff statement or recording. It can also include late charges if you were behind. The attorney's payoff figure comes straight from the lender, and you can compare it to your last statement. See can I sell my house if I am behind on the mortgage if you are catching up through the sale.

What if I owe more than the sale price?

Then the sale cannot pay the loan in full from the proceeds alone, and the attorney will not close until the lender agrees to accept less or the difference is covered. We work through that on the page about owing more than the house is worth. Tell us on the first call if you think this might be you.

Keep one thing after closing

Your copy of the settlement statement. It is the document that shows the payoff went out, and it is the first thing to reach for if a servicer's system takes a few weeks to catch up and sends you a statement by mistake.

Get a written offer with the math shown, or call and ask us anything first.