Properties with Mortgages

[Barbara Warren]

I have an off market property I am looking to put under contract. The owner owes a mortgage and has said that the mortgage would have to be paid off at closing. The property is in North Carolina. What form would I use as an addendum to my purchase and sale contract with the seller? This would be my first property with a unpaid mortgage. 

[Chris Mason]

Originally posted by @Barbara Warren:

I have an off market property I am looking to put under contract. The owner owes a mortgage and has said that the mortgage would have to be paid off at closing. The property is in North Carolina. What form would I use as an addendum to my purchase and sale contract with the seller? This would be my first property with a unpaid mortgage. 

 You're overthinking things, I think. Most real estate transactions involve properties being sold with outstanding mortgage balances. Existing mortgages are paid off as a matter of course, with no special contract addendum needed. 

Big wad of money goes into escrow, typically consisting of the down payment and lender funds.

Escrow takes that money and pays off the Realtors, the mortgage, the 2nd mortgage if there is one, and so on, and whatever is left is the seller's net proceeds.