Posted by River City on December 12, 2006 at 13:39:13:
These things are generally negotiable. The contract usually states that the seller will pay prorated taxes through the date of closing. The purchaser takes over after that point. The HUD (or settlement statement) will reflect this. The amount will be debited to the seller and credited to the buyer. If the closing agent uses a HUD-1 for the settlement statement, this will be reflected on the first page of the HUD.
The mortgage is paid to the date of the closing by the person obligated on the Note, unless otherwise stated in the contract. Most contracts state that the seller will deliver the property free and clear of all liens, which means that the mortgage would be paid in full.
The purchaser would not be responsible for paying the Note unless she or he is assuming the Note, and generally would begin making payments on the payment that is due after the date of closing. This also should be stated in the contract.
Not meaning to be rude, but…have you read your contract? If not, you need to sit down and read EVERY word of it.