Escrow & Title
In Maryland, if a seller has an existing mortgage at settlement, the proceeds are used to:
APay the buyer's closing costs first
BPay off (satisfy) the existing mortgage as part of settlement✓ Correct
CTransfer the mortgage to the buyer automatically
DDeposit into an escrow account for 30 days
Explanation
At a Maryland settlement, the seller's existing mortgage is paid off (satisfied) from the sale proceeds, and the seller receives the remaining equity.
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