Legal Question in Real Estate Law in California

Re: escrow payments

The seller, who remains the owner until escrow closes, has a contract with the lender to pay a certain amount each month until it is all paid out. Technically you could sell your home and still be paying monthly mortgage payments on it for years. Since, however,the loan is secured by the house, the minute you sell it the loan becomes all due; it is the sellers obligation to pay off the loan, although it is normally arranged that the buyer gets a new loan and pays off the old one [or assumes it].