Escrow & Title
In Michigan, which of the following would appear as a debit to the seller on the closing settlement statement?
APurchase price
BMortgage payoff of existing loan✓ Correct
CBuyer's earnest money
DNew mortgage proceeds
Explanation
The seller's existing mortgage payoff is a debit to the seller at closing because it reduces the seller's net proceeds. The seller must use sale proceeds to extinguish their mortgage before delivering clear title.
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