Which line on the Closing Disclosure indicates if sellers had more than one mortgage to pay off?

Which line on the Closing Disclosure indicates if sellers had more than one mortgage to pay off?

• A. N.04
• B. Section J
• C. N.05
• D. M.03

Answer: (C)

The line indicating whether sellers had more than one mortgage to pay off is found in N.05 on the Closing Disclosure. This section specifically addresses the seller's financial obligations, detailing how many mortgages exist and how they will be settled at closing. Therefore, if there are multiple mortgages, this line will reflect that information, which is crucial for both the buyer and seller to understand their respective financial responsibilities in the transaction. To further clarify the context, other sections of the Closing Disclosure serve different purposes. Section J typically lists the costs related to the transaction such as taxes, insurance, and other fees rather than providing information about the seller's mortgage obligations. N.04 may refer to the seller’s existing mortgage but does not specify if there are multiple liens or mortgages. M.03 addresses settlement costs unrelated to the details of mortgages. Thus, N.05 is specifically designed to inform parties about the mortgages that must be addressed, confirming its importance in understanding the seller's financing situation.

The line indicating whether sellers had more than one mortgage to pay off is found in N.05 on the Closing Disclosure. This section specifically addresses the seller's financial obligations, detailing how many mortgages exist and how they will be settled at closing. Therefore, if there are multiple mortgages, this line will reflect that information, which is crucial for both the buyer and seller to understand their respective financial responsibilities in the transaction.

To further clarify the context, other sections of the Closing Disclosure serve different purposes. Section J typically lists the costs related to the transaction such as taxes, insurance, and other fees rather than providing information about the seller's mortgage obligations. N.04 may refer to the seller’s existing mortgage but does not specify if there are multiple liens or mortgages. M.03 addresses settlement costs unrelated to the details of mortgages. Thus, N.05 is specifically designed to inform parties about the mortgages that must be addressed, confirming its importance in understanding the seller's financing situation.