Escrow & Title
A Kentucky closing agent receives the payoff statement for the seller's mortgage the day before closing. The payoff amount is $5,000 more than expected. The closing agent should:
AClose using the original estimated payoff and adjust later
BContact the lender to verify the payoff and inform the seller✓ Correct
CRefuse to close until the discrepancy is resolved with KREC
DRequire the buyer to cover the difference
Explanation
When a payoff statement shows an unexpected amount, the closing agent should verify with the lender and inform the seller. The discrepancy (often due to accrued interest or fees) must be resolved before or at closing using funds available from the transaction.
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