Do sale proceeds have to pay the mortgage before other creditors? | NC

About this video

Q: If an estate is insolvent, do sale proceeds from an out-of-state property have to pay the mortgage lender first before anything goes to other creditors? A: Usually, yes... A mortgage is a secured debt tied to that specific real estate, and the lien generally has to be paid off, or released, to deliver clear title when the property is sold. So the sale proceeds from that property are typically…