Escrow & Title

In a North Dakota transaction, the seller's existing mortgage that is being paid off at closing appears on the Closing Disclosure as:

AA credit to the seller
BA payoff/debit to the seller that reduces their net proceeds✓ Correct
CA debit to the buyer
DA credit to the lender

Explanation

The seller's existing mortgage payoff is a debit to the seller (reduces their proceeds). The closing agent collects sufficient funds to pay off the lender and records the mortgage satisfaction at closing.

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