Your Mortgage Gets Paid Off at Closing
When you sell your home to a cash buyer like DFW Fast Close, your existing mortgage does not transfer to the buyer — it gets paid off in full at closing. The title company handles this automatically through the escrow process.
The Payoff Process Step by Step
1. Payoff request: The title company contacts your lender to request a payoff statement — the exact amount needed to satisfy your loan through the projected closing date.
2. Net proceeds calculation: Your payoff amount is subtracted from the sale price. The remaining amount (minus closing costs) is your net proceeds.
3. Wire transfer: The title company wires your payoff directly to your lender on the day of closing. Your mortgage is satisfied the same day.
4. Lien release: Your lender files a lien release with the county within 30 days of receiving payoff. This clears your title permanently.
What If You Owe More Than the Home Is Worth?
If your mortgage balance exceeds the home’s value, you’re in what’s called an “underwater” or “upside down” situation. In this case, a short sale may be an option — your lender agrees to accept less than the full payoff amount. DFW Fast Close has experience with short sale purchases and can walk you through the process.
How Long Does Mortgage Payoff Take?
Lenders typically provide a payoff statement within 3–5 business days of request. This is built into the cash sale closing timeline — DFW Fast Close accounts for this in our standard 14-day close.