How does my mortgage get paid off?

If you have an existing mortgage on your home, it's paid off automatically as part of closing. You don't need to contact your lender, request a payoff statement, or send any payments yourself. The title company handles it for you.

How the process works

1. The title company contacts your mortgage lender before closing and requests a payoff statement. This confirms the exact amount needed to pay off your loan in full.
2. The payoff amount is deducted from your closing proceeds. Before your net proceeds are sent to you, the title company pays your lender directly from the sale funds.
3. You'll see the mortgage payoff as a line item on your closing statement (also called a settlement statement or HUD-1). This document breaks down every cost and credit in the transaction.
4. After closing, your lender releases the lien on your property and sends you a satisfaction of mortgage (or deed of reconveyance) document. This confirms your loan is fully paid off. It may take a few weeks to arrive.

What about a second mortgage or home equity loan?

If you have a second mortgage, home equity loan, or home equity line of credit (HELOC), those are also paid off at closing from your proceeds. The title company handles each lien in the same way.

What if my payoff amount is more than my proceeds?

If you owe more on your mortgage than your home sale amount, talk to your Opendoor Home Sale Advisor as early as possible. This situation requires additional steps and may affect whether the sale can proceed.

Tip: If you're not sure of your current mortgage balance, check with your lender before closing so there are no surprises on your closing statement.